0430 GMT - The volatility in U.S. government bond yields is likely to rise as the path of yields becomes increasingly data-dependent, say portfolio managers at Allspring Global Investments. "Absent a slowdown in economic growth, we believe yields could continue to move higher," say Matthias Scheiber and Rushabh Amin in a commentary. The increase in the federal-funds rate was well telegraphed and largely driven by the bond market, with yields across the curve at cycle highs. They maintain a cautious stance toward longer-duration U.S. government bonds. "While yields may remain volatile, we believe investors may have opportunities to selectively take advantage of further increases in yields, where appropriate," they add.
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