David Jane: Bond yields and dollar weakness

No one-way street

clock • 4 min read

A degree of leverage has built up in financial markets, warns David Jane, to the extent the prices of many assets now only make sense to leveraged investors rather than traditional long-only fund managers

There has been talk about rising bond yields of late and this may well be an important new trend. Equally important, however, is the recent weakness of the US dollar. The rise in yields in the US has led to a steepening of the yield curve, implying stronger growth and/or inflation, which is a positive signal for markets - equity markets, at least, not bond markets - while the weak dollar is supportive of global growth and rising commodity prices. There's still time to catch PA's Multi-Asset Roadshow in Bristol (7 Feb) and London (8 Feb). Register here This would suggest a strong st...

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

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

FCA's Rathi addresses Autumn Budget market abuse concerns

FCA's Rathi addresses Autumn Budget market abuse concerns

Pens open letter to Treasury Committee

Isabel Baxter
clock 04 December 2025 • 2 min read
More tax, less shelter: A slow-burn Budget for savers and investors

More tax, less shelter: A slow-burn Budget for savers and investors

'The Budget documents make for sobering reading for those trying to build up their wealth'

Laith Khalaf
clock 04 December 2025 • 3 min read
OBR 'deeply regrets' early release of Budget document

OBR 'deeply regrets' early release of Budget document

Mistaken release of Budget documents forced Richard Hughes' resignation

Linus Uhlig
clock 02 December 2025 • 3 min read