Sources of rising bond yields

There are a range of sources of rising bond yields:

For a view on how far bond yields will rise over the next 12 months, let us turn to highly regarded economist Ken Rogoff ( https://en.wikipedia.org/wiki/Kenneth_Rogoff ) from the AFR Business Summit 6/3/2018:

So Ken Rogoff sees US 10 year bond yields up 1% over the next 12 months 3.9% from the current 2.9%..... which is also up from 1.4% in July 2016. This means that:

  • While a US bond of 10 years duration last lost 13% of capital value since July 2016,

  • this same bond would lose another 8% over the coming year.

  • Keep in mind that all US assets are priced off US government bonds. So this bond yield rise has significant negative ramifications for all US asset prices.

https://www.businessinsider.com.au/chart-5000-years-of-interest-rates-history-2016-6?r=US&IR=T

Featured Posts
Posts Are Coming Soon
Stay tuned...
Recent Posts
Archive
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Postal Address

PO Box 739

Kenmore, Queensland

Australia

Call

T: 07 3202 6044

M: 0434 905 885

(use the mobile number)