Bond Yields Are Finally Looking Attractive. What to Buy Now.

It has taken a historic selloff, but the bond rout may finally be winding down. Yields are also looking plump enough to be attractive again.

A two-year Treasury now gets you 4.1%, a yield not seen since 2007 until very recently. High-quality bonds issued by companies like


AT&T


(ticker: T) and


Bank of America


(BAC) yield upward of 5%. Head out a little further on the risk spectrum and you can get 7% in quality preferred stocks with fixed-interest payments.