The short-term outlook is that bond markets are still vulnerable to strong economic growth and more ...
The short-term outlook is that bond markets are still vulnerable to strong economic growth and more aggressive central bankers. However, aggressive monetary tightening by the US central bank, in particular, increases the chance that we will see the peak in bond yields sooner than we thought. So, the ideal strategy would be to buy bonds now and go long if yields spike higher. In order of preference, we favour US Treasuries, UK Eurosterling, and European long-dated governments. In the US, it is clear that recent monetary tightening is insufficient to slow the economy and that only a domesti...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes