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German 10-year yields traded flat around 2.7097%, while the rate-sensitive 2-year yields were also steady at 1.9441%.
On Thursday, U.S. producer price data came in hotter than expected, renewing inflation concerns and prompting traders to scale back Fed rate cut bets.
Investors might consider shifting to shorter-maturity corporate bonds. Shriram Ramanathan from HSBC Mutual Fund suggests focusing on two- to three-year bonds. These bonds offer attractive yields with lower risk. Rate cuts depend on growth and US Federal Reserve actions. Short-duration funds and medium-duration funds are good options. Income-plus-arbitrage funds offer tax efficiency.
Ahead of Friday’s summit in Alaska, Trump said he believes his Russian counterpart is ready to end the war in Ukraine, but that peace would likely require at least a second meeting involving Ukraine’s leader.
