Bond investors are adopting a cautious stance ahead of this week's Federal Reserve policy meeting, with uncertainty over inflation and interest rates pushing them towards high-quality assets and away from aggressive market bets, according to a Reuters report.
Most investors expect the Fed to keep its benchmark interest rates unchanged in the 3.50%-3.75% range after its two-day meeting concludes on Wednesday. However, a recent spike in energy prices and renewed concerns over inflation have complicated the policy outlook, which had appeared relatively clear just a few weeks ago.
