Tag Archives: low bond yields

But investors should keep in mind that yields on government bonds could easily spike Global bond yields have plunged to new lows in recent days, as markets have switched to ‘risk off’ mode. This is just the latest manifestation of a trend: sovereign bond yields have been under downwards pressure for several years. Central bank QE and economic uncertainty are partly to blame. But investors should remember that sovereign bonds are not risk-free assets. And yields could easily jump over the...

The question of central bank credibility, and fixed-income investing when nominal yields are so low In the May issue of Perspectives, Pictet Wealth Management’s chief investment officer, César Pérez Ruiz, steps back to review the efforts of the world’s main central banks to boost the economy. The banks have introduced ever more radical measures, including negative interest rates and buying corporate as well as government bonds. But growth and inflation remain flaccid throughout the...