Government bonds could break through 'crazy' record lows in 2015

clock

A fresh flight to safety will ensure government bond yields break through "crazy" record lows again in 2015, Brandywine bond manager Regina Borromeo has said.

European government bond yields have hit record lows again this year, as the threat of deflation stalks the continent, while yields on benchmark UK and US debt have also dropped sharply from a starting level of 3% in 2014. Even now, yields across the developed world remain historically low, with Japan's 10-year bonds at new lows of 0.41%, Germany's equivalent at 0.69%, and France at 0.96% as of last week. "German bunds yielding 0.69%, that is crazy. But you cannot be bearish on bonds because there are technical factors as to why there is a safe haven bid in place," Borromeo (pictured)...

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 Bonds

Partner Insight: Soft landing favours corporate bonds

Partner Insight: Soft landing favours corporate bonds

RBC BlueBay Asset Management
clock 21 November 2024 • 2 min read
Prudential tops as preferred onshore bond provider by advisers

Prudential tops as preferred onshore bond provider by advisers

Quilter edges ahead of Canada Life into second place, Defaqto finds

Isabel Baxter
clock 08 April 2024 • 2 min read
Partner Insight: US inflation could hit 2% a year ahead of schedule

Partner Insight: US inflation could hit 2% a year ahead of schedule

Modest rate cuts would be justified in this scenario, says US investment giant

Gareth Jones
clock 17 October 2023 • 1 min read