Bond Yields Rollercoaster 2015

The U.S., UK, Germany and Japan 10 year government yields started the year high almost halved, and then climbed sharply by the end of June - what should we expect next?

Ashis Dash 13 August, 2015 | 10:16AM

The first half of 2015 has been a veritable roller coaster ride for the global bond market. While 10 year government bond yields did move up during the year, it was their trajectory, especially German bunds’, which grabbed the headlines.

30% of the euro area’s sovereign bonds had negative yields

The U.S., UK, Germany and Japan 10 year government yields started the year at 2.17%, 1.76%, 0.54% and 0.33% respectively as at January 1, falling to 1.64%, 1.33%, 0.08% and 0.2% respectively before climbing sharply to 2.47%, 2.19%, 0.92% and 0.47% by the end of June. The upward move in yields led to both the Barclays Global Aggregate Bond index and Morningstar Global Bond category posting negative returns year to date, with the index returning -3.68% and the category returning -4.00% as at June 26.

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About Author

Ashis Dash  is a Morningstar Fund Analyst

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