The outlook for government bonds has improved amid easing geopolitical tensions and falling energy prices, analysts at The Investment Institute by UniCredit say in a note. However, they reckon that the cautious stance of central banks is likely to prevent a significant decline in yields. They expect the 10-year U.S. Treasury and 10-year Bund yields to trade around 4.5% and 3%, respectively, over the coming quarters. Short-dated U.S. Treasury yields have room to decline, as rate hike expectations appear overly aggressive, while the long end remains more exposed to fiscal risks, they say. On Wednesday, the 10-year Bund yield closed at 2.876%, according to Tradeweb. The 10-year U.S. Treasury yield last trades at 4.487%, up 1.4 basis points. (emese.bartha@wsj.com)
Dow Jones Newswires
Outlook for Government Bonds Seen Improving — Market Talk
The outlook for government bonds has improved amid easing geopolitical tensions and falling energy prices, analysts at The Investment Institute by UniCredit say in a note. However, they reckon that the cautious stance of central banks is likely to prevent a significant decline in yields. They expec…