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

UK inflation rises to 3.8% in July

UK inflation rises to 3.8% in July

Core CPI also up to 3.8%

Sorin Dojan
clock 20 August 2025 • 2 min read
Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read