Business · Markets · 3 hrs ago

Korean adviser favors 3-to-5-year US bonds for after-tax returns

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.

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