What Next for Global Bond Markets?

With the market pricing in a Fed rate rise in December - and a Bank of England rate rise before the end of the year, we look at the outlook for global fixed income

Morningstar 21 September, 2017 | 9:21AM

The biggest influence on global bonds in recent weeks has been the tension over North Korea, which has led during more nervous periods to “safe haven” buying of government bonds.

In the US, for example, the yield on the benchmark 10-year Treasury note had been trading around the 2.25% mark in the first half of August, but got as low as 2.04% on September 7. There were similar North Korea-induced declines in other major bond markets, with the yield on the 10-year German government bond falling to a low of 0.30%, also September 7, and the yield on the Japanese equivalent dropping below zero, September 8.

More recently the bond markets appear to have become somewhat less worried about North Korea and yields have risen again with, for example, the US benchmark yield now just under 2.3%, not quite back to its levels before the tensions emerged. Whether the more relaxed mood will persist is unclear. With potentially more on the missiles horizon, has led to modest capital gains for bonds.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Morningstar  

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies