Tag Archives: yield

The Safe-haven government bond bubble did not pop, but Italy or Spain have become low yielders as well Government bond yields under 10 years for safe-havens are close to zero. In April 2013, even 20 year bond yields are less than 3%, What can explain this bubble of the century? Latest Data May 2015: A big Bond Sell-Off has started (from JGBs, over German Bunds to US Treasuries). Via Zerohedge: Having briefly tested above 3.00% on Thursday, for the first time since December 2nd, 2014, the...

 (post written originally in March 2013) We reckon that the Swiss National Bank (SNB) will have issues maintaining the EUR/CHF floor in the longer term, because the expected yields on Swiss investments abroad will not be sufficiently higher than the yield on investments in Switzerland. Because of this insufficient risk-reward relationship, outflows in the capital (now called  “financial”) account of the Swiss balance of payments will not cover the persistent Swiss current account...