Kevin Giddis, managing director of fixed income capital markets for Morgan Keegan, told CNBC’s “Power Lunch” that the Federal Reserve’s concentration on inflation is good news for bond investors.
“I think that over the next quarter, since the Fed has declared inflation Public Enemy No. 1, and they’re going to focus on that, it’s going to affect the long end of the market,” Giddis said. “Being up on the front end of the curve is a good bet, especially if you looked at today’s two-year results -- good interest, and it looks like investors are seeing the same things. You’re getting most of the yield without much of the risk.”