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Bond investors looking for income without taking unnecessary duration risk may want to keep their eyes trained on the front end of the Treasury curve, according to Allspring Global Investments strategist Noah Wise.

Wise, who serves as the firm’s head of global macro strategy and as a senior portfolio manager, sees short dated Treasurys as a compelling place to park capital while the Federal Reserve keeps markets guessing.

The bottom line is straightforward. In his view, investors can still find attractive yields in shorter maturity government debt without reaching too far out on the curve.

That matters because longer duration bonds can be more vulnerable when interest rate expectations swing sharply. With the Fed still central to every major allocation decision, investors are being paid to stay nimble.

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“You see a market that’s pricing in a couple of hikes for the Fed here over the next couple of years,” he told CNBC’s “ ETF Edge ” this week ahead of Wednesday’s Fed decision on interest rates. “That type of yield north of 4% with relatively low risk is, in our view, pretty attractive.”

For investors who spent years scraping for yield under ultra low rate policy, a relatively conservative instrument offering more than 4% is not a small detail. It is a reminder that cash flow finally has value again.

Allspring Global Investments primarily operates across fixed income, money markets and equities. According to the firm’s website, its client base includes consultants, financial advisors, corporations and financial institutions.

Wise frames the short dated Treasury opportunity as one part of a broader diversified strategy. The goal is not simply to hide from risk, but to earn income while staying flexible in a market driven by central bank signals.

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He also sees value in the U.S. credit market, where he points to sturdy macroeconomic fundamentals. That view suggests investors do not need to abandon corporate debt entirely, provided they are selective and properly compensated.

“We like [U.S.] credit, whether that’s investment grade or high yield, more than we like European credit at this time,” he said.

The preference for U.S. credit over European credit is notable as investors compare growth prospects, policy paths and relative yields across major developed markets. In an environment where global capital is highly sensitive to rate differentials, geography still matters.

Wise is not limiting the hunt for income to Treasurys and domestic credit. He also sees emerging markets as a source of opportunity, particularly for investors willing to look beyond the usual crowded trades.

Latin America stands out in his assessment. The region can offer significantly higher yields, although those potential rewards come with currency, political and geopolitical risks that investors must price honestly.

“Particularly in Latin America, you can find yields that are at [double digits] so there’s a lot of opportunities,” he said. “I think even with the challenges and risks that we see geopolitically, you can still generate pretty attractive yield and income in a really diversified manner.”

That approach reflects a broader market reality. Investors are no longer forced to choose between negligible cash returns and reckless speculation, because parts of the bond market now offer meaningful income for disciplined capital.

The Fed’s latest decision to hold rates steady did not alter Wise’s strategy. In a special note to CNBC, he said the volatility around short maturity yields remains an opportunity rather than a reason to retreat.

“Opportunity always lurks where uncertainty is found. The market [moving] in short-term Treasury yields between these two Fed meetings is a good example of this, and our strategies have been tactically adjusting our exposure to this part of the curve in an effort to take advantage of that volatility,” he wrote.

For investors, the message is clear enough. The front end of the yield curve may not carry the thrill of a speculative equity trade, but in a policy driven market, steady income with limited duration risk can be exactly the kind of discipline that preserves capital.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.