Business · Markets · 3 hrs ago
Korean adviser favors 3-to-5-year US bonds for after-tax returns
Lee Myeong-seok of Korea Investment & Securities recommends 3-to-5-year US bonds for investors weighing what to buy as interest rates rise.
He favors individual bonds with low coupon payments, rather than long-term bonds bought mainly for potential price gains.
The strategy aims to improve returns after tax, an important consideration for wealthy investors.
US 10-year Treasury yields rose to 5.26% in early October, amid higher oil prices and investment in AI equipment.
Those pressures pushed inflation measures higher, adding to uncertainty about whether interest rates will rise further.
The outlook cited is for yields to ease gradually, but the advice does not specify a timetable or guarantee that they will fall.
A Korean investment adviser recommends low-coupon individual US bonds with maturities of three to five years to improve after-tax returns.
The strategy favors income over potential capital gains from long-term bonds.
The article says US Treasury yields are expected to have reached a peak and to decline gradually.
The US 10-year Treasury yield rose to 5.26% in early October amid inflation concerns and investment in AI infrastructure.
- Who
- Lee Myung-seok, team leader at Korea Investment & Securities’ Banpo PB Center.
- What
- He recommends low-coupon individual US bonds with three-to-five-year maturities to maximize after-tax returns.
- When
- The article was published on October 25, 2026.
- Where
- The bonds are US Treasury bonds.
- Why
- The article says yields may have peaked and could gradually decline, while the strategy aims to maximize after-tax returns.
This story does not have two clearly opposing sides.
US consumer and producer price indexes rose sharply, according to the article.
The US 10-year Treasury yield reached 5.26%.
The article says investors have increasingly asked whether to buy bonds and which bonds to choose.
- Adviser
- Lee Myung-seok, Korea Investment & Securities’ Banpo PB Center
- Recommended maturities
- 3 to 5 years
- Bond type
- Low-coupon individual bonds
- US 10-year Treasury yield
- 5.26% in early October
- Oil price
- Above $100 per barrel amid concerns over the Strait of Hormuz