Bonds: A Contrarian Bet?

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Fixed Income Investors Believe Fed Policy-Makers Will Make A Mistake – Could Long Bonds Be A Contrarian Bet For 2022?

 

 

Government bond markets may once again be a step-ahead of other assets classes? We are concerned by the prospect of monetary tightening because of the dominant role of Central Banks in providing liquidity. Soaring term structure convexity and a flattening at the back-end of the US Treasury curve point towards ‘stagflation’ and rising credit risks for 2022. In this light, the out-of-favour 10-year US Treasury note may be an interesting investment?

 

 

 

See our latest published research, Global View - Fixed Income Investors Believe Fed Policy-Makers Will Make A Mistake – Could Long Bonds Be A Contrarian Bet For 2022? - October 2021

 

 

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