They recommended "near-term caution" on corporate debt because of the European fiscal crisis. Bank and finance bonds will be the most volatile, according to the report.
Investors are looking for ways to increase yield as Treasury rates set record lows.
U.S. 10-year yields were little changed today at 1.83 percent as of 12:46 p.m. in Tokyo, according to Bloomberg Bond Trader prices. The 2 percent security maturing in November 2021 changed hands at 101 17/32. The rate slid to 1.67 percent on Sept. 23, the lowest ever.
U.S. five-year notes yielded 0.71 percent, versus the record low of 0.6981 percent Jan. 31.
The Bank of America U.S. Corporate and High Yield Master index yielded 4.38 percent.
Increasing strength in the U.S. economy is damping demand for the safety offered by Treasuries.
Applications for unemployment insurance payments dropped by 12,000 to 367,000 in the week ended Jan. 28, the Labor Department said yesterday. U.S. employers probably added 140,000 jobs in January, following 200,000 in December, according to the median forecast in a Bloomberg News survey of economists before the figure today.
Fed policy makers said Jan. 25 that they will keep their benchmark interest rate at virtually zero until at least late 2014, and Chairman Ben S. Bernanke said he's considering buying bonds to sustain the expansion.