Is it the right time to invest in US bonds? Akhil Mittal answers

economictimes.indiatimes.com:

Akhil Mittal, Senior Fund Manager- Fixed Income, Tata Asset Management, says longer term, these elevated interest rates are worth buying today because globally we will not see these interest rates two, three or five years down the line. So it makes sense to buy interest rates right now, especially if you talk about the US. From 2008 till 2020, we saw those zero interest rates and tons of tons of money printed post the Global Financial Crisis.
Investing in the US bonds for the purpose of diversification can sound like a very interesting idea. Can you explain the entire trajectory of the US bonds looking at the interest rate scenario. Do you think it is a good time to lock your money in these kinds of investment avenues?
Broadly on the interest rate trajectory side, worldwide, from 2022 onwards, central banks have been pushing rates higher.

Hence the bond yields everywhere worldwide have gone higher and in the US more so because we saw very sharp rate hikes by the Federal Reserve which led to sell-off in yields also. As of now, the US two-year bond rates are around 5% compared to 0.5% two years ago. That is the kind of move that we have seen.

Now, going forward, the way we see it, all central banks worldwide are committed to inflation. The Federal Reserve also said that they will fight against inflation till the last drop, till it comes back into the 2% zone. So it's a long story.

We might not see many rate hikes going forward. We might see the yields or the rates remaining elevated for a longer period of time. So that is my sense for at least the next six to nine months.