Shorter-dated Treasuries, high quality corporates and munis as well as international bonds make sense for a diversified portfolio.

Yields rose but stayed below Thursday’s multiyear highs, with the upward trend driven by factors reinforcing market expectations of further interest-rate hikes by the Federal Reserve.

U. S. government bond yields extended their advance on Thursday as investors responded to stronger business activity figures, developments in energy markets and expectations surrounding the Federal Reserve’s next policy decisions.

While analysts and economists have pointed to sticky inflation juiced by higher oil prices, demand for AI companies' bonds, and a record $40 trillion federal debt, a debate has emerged about how much of the rise in yields is being driven by a strengthening economy.

Wall Street ends higher as yields ease and oil slips; S&P 500 sector performance shows tech strength and market narrowing risks.

Elevated Treasury yields will complicate both Federal Reserve policy and Treasury financing.

Morgan Stanley late Thursday changed their Treasury yield forecasts, to reflect their view the Fed will make two more rate hikes before pausing one increase short of what the market expects. The explanation was notable,