As US stock markets reach new highs, UBS recommends investors rebalance portfolios by increasing exposure to short- and medium-term government bonds to mitigate risk and capitalise on rising yields amid economic uncertainties.
With U.S. equities pushing to fresh highs, UBS is urging investors not to let stock-market gains leave portfolios overweight in risk assets. The bank says the recent climb in government bond yields has created a more attractive entry point for high-quality fixed income, particularly for those looking to bring their allocations back in line with long-term plans.
The call comes after a strong month for Wall Street. On 30 April, the S&P 500 reached another record, while the Dow Jones Industrial Average and Nasdaq Composite also closed at all-time highs, according to Associated Press data. The rally capped an unusually powerful April for U.S. shares, driven largely by technology and helped by better-than-expected earnings from names including Alphabet and Intel.
Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Financial Services, said the prolonged outperformance of stocks relative to bonds meant many investors could now consider shifting some money back into fixed income. She argued that the case is especially strong when share prices are elevated and valuations have risen further.
UBS’s preferred approach is to focus on quality government debt with short to medium-dated maturities. The firm says these securities still offer respectable income while carrying less interest-rate sensitivity than longer-dated bonds, making them better suited to periods when markets turn uncertain. The bank also noted that Treasury yields had climbed to their highest levels in about a month before easing slightly after weaker-than-expected U.S. gross domestic product data.
For investors seeking simplicity, UBS suggested either buying individual bonds directly or building a ladder of staggered maturities. That structure can help smooth the impact of rate changes and can be tailored to short-term savings goals. Those preferring pooled exposure can turn to government bond exchange-traded funds, although UBS cautioned that fund prices will continue to fluctuate because they do not have fixed maturity dates.
The backdrop remains unsettled. The Federal Reserve held rates steady at its April meeting, reflecting concern over persistent inflation pressures and softer signs in the economy. That combination, together with volatile energy prices and geopolitical risks, has reinforced the argument for at least some defensive allocation to Treasuries.
UBS said some exposure to government bonds makes sense as protection against adverse economic scenarios, even for investors who have recently benefited from the equity rally.
- https://www.cnbc.com/2026/04/30/now-is-the-time-to-rebalance-your-portfolio-and-snap-up-these-bonds-ubs-says.html – Please view link – unable to able to access data
- https://apnews.com/article/4e1442eeb72e72fc921e6804287d2b89 – On April 30, 2026, U.S. stock markets surged to record highs, with the S&P 500 rising 1% to 7,209.01, marking its best month in over five years. The Dow Jones Industrial Average increased by 1.6% to 49,652.14, and the Nasdaq composite gained 0.9% to 24,892.31. The Russell 2000, representing smaller companies, saw a 2.2% rise to 2,799.90. Alphabet’s stronger-than-expected profits contributed to the tech sector’s performance. Year-to-date, the Nasdaq is up 7.1%, the S&P 500 by 5.3%, the Dow by 3.3%, and the Russell 2000 by 12.8%.
- https://apnews.com/article/fc22c5b3b62593817c7e0eba52a42ce1 – On April 24, 2026, U.S. stock indexes had mixed performances, influenced by Intel’s strong earnings report and market uncertainty related to the Iran war. The S&P 500 rose by 0.8% to 7,165.08, reaching a new all-time high. The Nasdaq composite climbed 1.6% to 24,836.60, driven by a 23.6% surge in Intel’s stock. The Dow Jones Industrial Average fell by 0.2% to 49,230.71. Year-to-date, the S&P 500 is up 4.7%, the Nasdaq has climbed 6.9%, the Dow has gained 2.4%, and the Russell 2000 has risen the most at 12.3%.
- https://apnews.com/article/b147717d731d3f7cfaf27a9625715c21 – On April 28, 2026, major U.S. stock indexes declined, halting Wall Street’s recent record-setting rally. The S&P 500 dropped 0.5% to 7,138.80, the Dow Jones Industrial Average fell 0.1% to 49,141.93, and the Nasdaq composite declined 0.9% to 24,663.80. The downturn was influenced by falling AI and semiconductor stocks, particularly Nvidia and Broadcom, and a surge in oil prices due to uncertainty surrounding the reopening of the Strait of Hormuz. Year-to-date, the S&P 500 is up 4.3%, the Dow by 2.2%, the Nasdaq by 6.1%, and the Russell 2000 by 11%.
- https://www.kiplinger.com/news/live/fed-meeting-updates-and-commentary-april-2026 – The April 2026 Federal Reserve meeting concluded with the central bank maintaining the federal funds rate at 3.5% to 3.75%, amidst rising inflation pressures fueled by spiking oil prices due to geopolitical tensions in the Middle East. This was Fed Chair Jerome Powell’s final meeting before his term ends on May 15, though he announced plans to remain on the Board of Governors until the DOJ’s investigation—recently suspended—is completely closed. The meeting underscored a complex policy backdrop, balancing elevated inflation—particularly from energy prices—and signs of softening economic momentum. The decision not to raise or lower rates reflects a cautious stance amid global uncertainty. The FOMC vote showed internal division, with one member favoring a rate cut and three opposing the current easing bias. Kevin Warsh’s nomination to succeed Powell advanced to a full Senate vote, with expectations of confirmation by May 11. The Fed’s press conference emphasized restraint amid uncertain inflation trends, with Powell affirming his non-political intent and support for institutional independence. Looking ahead, markets remain uncertain about the policy trajectory under Warsh’s leadership in a persistently volatile environment.
- https://www.statmuse.com/money/ask/s-and-p-500-index-returns-for-april-2026 – The S&P 500 (GSPC) has returned 7.1% this month. The highest closing price for the S&P 500 (GSPC) all-time was $7,041.28, yesterday. The latest price is $7,030.64. The S&P 500 (GSPC) has returned 1.3% this year and since January 1, 2026.
- https://www.statmuse.com/money/ask/s-and-p-500-2026-year-to-date – The S&P 500 (GSPC) has returned 4.3% since January 1, 2026. The highest closing price for the S&P 500 (GSPC) all-time was $7,041.28, yesterday. The latest price is $7,030.64. The S&P 500 (GSPC) has returned 1.3% this year and since January 1, 2026.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 30 April 2026, which is within the past week, indicating high freshness. The narrative aligns with UBS’s recent publications, such as the 29 April 2026 article titled ‘Government bond yields are too high, so time to rebalance?’ ([ubs.com](https://www.ubs.com/global/en/wealthmanagement/insights/marketnews/article.3333792.html?utm_source=openai)). However, the specific quotes attributed to Ulrike Hoffmann-Burchardi cannot be independently verified, as they do not appear in the available sources. This raises concerns about the originality of the content. Additionally, the article includes updated data but recycles older material, which may affect its originality.
Quotes check
Score:
4
Notes:
The direct quotes attributed to Ulrike Hoffmann-Burchardi cannot be independently verified, as they do not appear in the available sources. This raises concerns about the authenticity of the quotes. The wording of the quotes varies between sources, which may indicate potential reuse or misattribution. The lack of verifiable sources for these quotes significantly undermines the credibility of the article.
Source reliability
Score:
7
Notes:
The article originates from CNBC, a major news organisation, which is a strength. However, the reliance on a press release from UBS, a company with a vested interest in the content, raises concerns about potential bias. The article appears to be summarising or rewriting content from UBS’s press release, which may affect its independence. The lack of independent verification for the quotes further diminishes the reliability of the source.
Plausibility check
Score:
6
Notes:
The article’s claims about UBS recommending rebalancing portfolios amid rising government bond yields are plausible and align with UBS’s recent publications. However, the lack of independent verification for the quotes and the recycling of older material raise questions about the article’s originality and accuracy. The absence of supporting details from other reputable outlets further diminishes the plausibility of the claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article’s reliance on unverifiable quotes and a press release from UBS, combined with the recycling of older material, raises significant concerns about its originality and accuracy. The lack of independent verification for key claims further diminishes the article’s credibility. Given these issues, the article does not meet the necessary standards for publication.