Rising market rates ‘harbinger of misery’
The yield on US 10-year Treasury bonds topped 2.8 percent on Tuesday, the highest point since 2018. The 10-year yield thus technically breaks the downward trend line that dominated the government bond market for the last four decades. “This is a harbinger of misery.”
Economist comment: Chinese government bonds attractive
At more than USD 15 trillion, the Chinese bond market is the second largest in the world. China only has to surpass the United States. China is therefore the second-largest economy in the world and the Chinese economy is already almost 20% larger than the United States in purchasing power parity terms. Yet many investors outside China hardly have any positions in Chinese bonds.
This while, at this time, there is a high added value, both in terms of return and diversification in a broadly diversified bond portfolio.
AXA sees no problem with low interest rates
The bond market is in the doldrums. The value of the world’s negative yielding debt has risen to more than USD 16,000 billion, the highest level in six months. Yet not every bond investor is worried about negative yields.
‘Liquidity crisis threatens bond market’
A sudden liquidity drought is a serious threat to investors in European corporate bonds, so warns Ludovic Colin, manager of the Vontobel Bond Global Aggregate Fund. It means corporate bond markets on the continent are vulnerable to a correction.