US Treasury yields (^FVX, ^TNX, ^TYX) are trading higher as the market waits for Friday’s jobs print ahead of the presidential election and Federal Reserve meeting set for next week. Bondbloxx founder Leland Clemons joins Seana Smith to discuss his bond market outlook as investors weigh macro-level uncertainties on Catalysts.

“Investors need to remember that rates may have backed up because the economy is strong. Corporate balance sheets are strong. Corporate earnings are strong. When you look at what's happened in the S&P 500 (^GSPC) earnings after Q3, I think we continue to think investors need to lean into this opportunity [and] look at corporate bonds as an opportunity for further investment rather than sort of playing into the short-termism of what's happening with rates this week, next week,” Clemons says.

He adds, “The monthly income or quarterly income that comes from fixed income, particularly ETFs, can be a real ballast in the face of uncertainty. Staying the course [and] remembering that the economy is strong [is] just really important amid what is inherently going to be over the next few weeks a lot of narrative that can be distracting.”

Clemons says he thinks that the bond market has priced in “a strong economy” but notes that yields are still at attractive levels. “Investors really have an opportunity to lean into these yields and take advantage of really attractive entry points.”

He notes that he thinks “traders may have overextended themselves” by “perhaps betting on what they want to happen then rather following what the Fed has been very clear that they're going to take a data-driven approach, looking at things like earnings, things like inflation, things like employment, and candidly, the data has come back more positive than I think a lot of traders may have bet.”

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Naomi Buchanan.