Bloomberg Surveillance · Tuesday, September 29, 2026
George Borey, Chief Investment Strategist for Fixed Income at Allspring, suggests that bond yields, particularly above 5%, are becoming very powerful, offering good nominal and real returns over the next five to 10 years. He recommends intermediate duration bonds, specifically in the five to 10-year range, as attractive due to a flattening yield curve, which means investors don't have to take on excessive risk for incremental yield.
“But right now, bond yields have been going up, prices are down. But once you get to certain yield levels, good things tend to happen to bond investors. And as bond yields in treasuries broke above 5% and dragged other bonds along with it, as you point out, things like perhaps Microsoft at 6%, those bond yields become very, very powerful in your portfolio.”
“All spring right now, we do like intermediate duration. So that 10-year part of the curve is looking pretty attractive. And while 30-year yields also are relatively high, there's a lot of price volatility in 30-year bonds. So maybe you don't need all that volatility in your portfolio. Five, seven, 10-year bonds can do just fine.”
“So in that So going from 5 to 6, you pick up. Going from 10 to 6, you don't lose that much. So that intermediate part of the curve, it's still positively slow, meaning for each incremental unit of duration, you're getting extra income. But it is fairly flat. Again, which is why you don't have to rush out and buy loads of duration. But legging in and creating a nice little laddered portfolio works well.”