Want to bet on the bond rally? Check out these overlooked funds.

Treasury’s latest move has boosted the bond market Wednesday, but the rally may be misleading. The U.S. Treasury, led by Scott Bessent, said it will pay off government IOUs with borrowed money, lifting longer-term rates-sensitive assets. Closed-end mutual funds are one way investors try to “bet” on the momentum, though volatility is a risk: CEF Advisors points to BlackRock funds including Core Bond Trust (BHK), Taxable Municipal Bond Trust (BBN), and MuniHoldings Fund (MHD), all leaning into longer-term bonds and using leverage. Thomas J. Herzfeld Advisors highlights municipal-tax-free peers (FMN, MFM, PNI, PCQ), which also sell at about 90–92 cents per dollar of assets. ETFs like EDV, ZROZ and LTPZ also jumped after Treasury plans to raise its long-term bond buyback rate.