Model Portfolio Update

Saturday December 16, 2023

Just over three months ago, we decided to repurchase a position in long-term U.S. Treasuries. At the time, we wrote that we “are seeing signs that the move higher in longer-term yields may be nearing an end.” Longer-term rates moved higher in October before reversing dramatically. The 10-year treasury yield briefly spiked from 4.3% to 5.0% and is now trading all the way back down to 3.9%, near the same level it was one year ago.

After the strong rally in long-term bonds, we once again view longer-term interest rate risk as less attractive and we are making the following model portfolio changes…