Melon Active Fixed Income CIO David Leduc believes investors should avoid long-duration bonds to avert potential losses. : Leduc, chief investment officer of Mellon's active fixed-income team, blames it on a disconnect between Wall Street and the Federal Reserve. "If you look at Fed Funds futures, they're still pricing in about a 50% chance of a rate cut in December at the end of the year," he told CNBC's "Futures Now " on Thursday. "The market is over-discounting the possibility of Fed cut this year." "Fixed-income investors should be improving the quality of their portfolios," he said.