The anticipation of higher rates is already priced into the Treasury market, says Kim Miller, portfolio manager for the Fidelity Conservative Income Bond Fund. The tepid response of Treasuries to recent Fed statements compared to the serious jump in rates after Ben Bernanke's speech last May suggests to Miller that rates do not need to rise materially from here. Miller says investors can reap higher yields with less interest rate risk and volatility in high quality short term corporate bonds.

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