Bond yields (^TYX, ^TNX, ^FVX) have been tumbling since Federal Reserve Chair Jerome Powell signaled the central bank may begin cutting interest rates in September in his Jackson Hole Economic Symposium speech last week.

"Longer term interest rates are definitely getting that push lower in terms of the absolute level of yields, and reflective of some of those concerns that you see on the go forward basis around a weakening labor market, inflation moving towards the Fed's target level," Principal Asset Management global fixed income CIO Michael Goosay tells Catalysts.

"So at this point, there's not really a level other than the front end of the curve continues to need to be reduced in order to have a more normal sloped yield curve on a go forward basis."

Goosay comments on the Fed's monetary policy as officials strive to bring inflation down to a 2% rate, suggesting to investors that "duration becomes your friend" as the central bank transitions into cutting rates:

"The move for investors is to start to think about shifting out the curve. What has been a large inflow into money market funds, shorter duration products, [and] shifting those into more interest rate sensitive or longer duration assets. As long as the economy remains okay, which we think it does for the foreseeable future, even things like high yield and investment grade credit should perform okay."

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This post was written by Luke Carberry Mogan.