They can move out to a longer maturity and catch a more attractive yield.
The fund manager can, therefore, select the mix of bonds which offers the most attractive yield and capital growth potential.
As expected, the attractive yields generated strong demand from investors.
He says that this is not a great time to take on more risk by going for attractive yields.
While many investors continue to lose money in the stock market, owners of savings bonds are seeing some attractive yields.
He suggests digging a bit deeper, to make sure that a fund can keep paying attractive yields.
While foreign shares often paid low dividends in the past, rising numbers now offer attractive yields.
"The concept of an attractive yield with relatively low risk seems to be compelling."
That requires attractive yields," said one trader who asked not to be identified.
To produce attractive yields when interest rates are at or near bottom, financial engineers have invented some high-tech issues.