US Government Bonds Should Outperform UK Gilts

Morningstar Investment Management's Head of Capital Markets Tanguy de Lauzon explains why he has increased exposure to the US yield curve in recent months

Tanguy De Lauzon 27 April, 2018 | 2:28PM

 

 

Tanguy de Lauzon: US Treasuries are starting to look exciting for the first time in over a decade. The US 10-year yield has now doubled since its lows mid-2016 and is getting close to 3%. This compares to a 1.5% yield in the UK. Whether we look at nominal yields or real yields that is adjusted for inflation expectations, this spread is at levels we've rarely seen in history.

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About Author

Tanguy De Lauzon  is Head of Capital Markets & Asset Allocation for Morningstar Investment Management EMEA

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