Recent volatility in the Treasury market doesn't mean bonds can't offer benefits to investors. On this episode of Market Sense, a Fidelity portfolio manager who specializes in fixed income explains why the current climate of higher yields and the potential for lower interest rates could deliver attractive returns. Plus, we dig into all the latest market headlines and trade news. Topics covered: • Bond opportunities • Bond ETFs • Active and passive bond funds 01:18: Middle East Conflict 02:50: Federal Reserv ...

Core Insights - The average yield of bond funds in the public market for May was 0.19%, with approximately 80% of the products showing floating profits [2][8] - Convertible bond funds performed well, with an average return of 1.28% in May, while passive index bond funds lagged behind with a mere 0.07% increase [3][4] Performance Analysis - Top-performing funds included Zhonghai Convertible Bond A and Huashang Convertible Bond Selection A, with returns of 4.72% and 3.09% respectively [5][7] - A total of 600+ bond funds experienced floating losses in May, with Jin Ying Yuan Feng A and He Xu Zhi Yuan Xin Yue Li Rate Bond A showing significant declines of 1.95% and 1.69% [8][10] Fund Details - Zhonghai Convertible Bond A utilized a quantitative approach for style selection and invested in undervalued convertible bonds [7] - Jin Ying Yuan Feng A's significant drop was attributed to its heavy investments in stocks and bonds that underperformed in the market [8][10]