The Federal Reserve today decided to keep its federal funds target rate at 1.25%.
"I don't think it was any surprise," said Cynthia R. Plouche, CIO at Abacus Financial Group. "A lot of fixed-income investors are poised for an economy that grows again at some point.
"There's a growing sentiment toward non-Treasuries, such as corporates," she said. As the economy turns around and rates rise, "you get more investors willing to go for higher-yielding securities.
"There is reason for optimism on the economy," she added. "But the whole Iraq issue still looms and causes a shadow over the market."