What are bonds telling us?

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The Spectre of Bonds?

 

US 10-year Treasury yields are leading World Government Bond yields higher, with latest data confirming an upward trend break. However, investors should not read too much into this, because bonds have several moving parts and the ‘front end’ of the term structure is currently dominating the more benign message from the ‘back end’. It is the belly of the curve that looks most interesting, since convexity is likely to keep building and mid-duration yields should rise by more.

 

 

See our latest published research, Global View - The Spectre of Bonds? - September 2021

 

 

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