No siesta in sight for global bond markets

In recent weeks we’ve had yet another bond market tantrum; these seem to be becoming a regular occurrence these days. Just over the last month we’ve seen volatility in yields for both Bunds and US Treasuries.

May and June tends to be a period when risk assets are a lot more volatile, and, because we’ve seen significant pick-up in volatility in both currencies and in the core bond markets, we wouldn’t be surprised to see some volatility coming through in risk assets as well. So we think it’s a prudent idea to reduce some exposure high-yield markets, which have held up very well during this volatility and have placed it back into the core bond markets.

Paul Brain – Newton, A BNY Mellon company 

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