What Bond Funds To Buy Now May 2026

Short-term yields are falling faster than long-term yields as the Fed eases, creating a "steeper" curve. This rewards investors who move out of cash or money market funds into intermediate durations. Strategy Highlight BND Broad U.S. exposure; stable core holding. Tax-Exempt VTEB

Top Pick : remains a benchmark for broad exposure at a low 0.03% expense ratio. what bond funds to buy now

: "Investment-grade" corporate debt is favored over high-yield (junk) bonds right now. While yields are attractive, credit spreads—the extra yield over Treasuries—are at multi-decade tights, meaning riskier bonds offer less "cushion" if the economy softens. Short-term yields are falling faster than long-term yields

Top Pick : or shorter-term versions to manage volatility. Opportunity in a Steepening Curve what bond funds to buy now