Why some investors are turning to high-yield bonds amid the volatility. Where to find opportunity

The fixed income market has recently seen some turbulence, but investors shouldn't shun high-yield bonds — especially as they have been outperforming in recent years, according to asset management firm BondBloxx. All eyes have been on the Treasury market after yields jumped on Tuesday due to fears over inflation. The long-dated 30-year Treasury saw its rate top 5.19% for its highest level since July 2007, while the 10-year note yield hit levels not seen since January 2025. Yields tumbled Wednesday as oil prices moved lower. Bond yields move inversely to prices. Right now, there are better opportunities in high-yield bonds, especially amid the volatility, according to JoAnne Bianco, senior investment strategist at BondBloxx. "It probably seems counterintuitive, but they are less risky than long-dated Treasurys," she said. "They're lower in volatility, they're better in return over pretty much every time period." That lower volatility comes from the overall short duration in the space, making bonds less sensitive to interest rates, Bianco noted. Duration is a measure of a bond's price sensitivity to fluctuations in interest rates. Bonds with longer maturities tend to have greater duration and thus see sharper price swings when rates move. HYSA YTD mountain BondBloxx USD High Yield Bond Sector Rotation ETF year to date Meanwhile, U.S. …