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Why Investors Should Stop Believing Claims About Peak Bond Yields
As www.handelszeitung.ch reports, investors are increasingly having doubts about market observers' claims that bond yields have reached their peak. Last year, the yield on the 10-year U.S. Treasury note fell more than 0.5% after reaching a peak of 4% in October. Credit assets appeared more attractive than they had been since 2009, and the possibility of an impending recession seemed certain. Impact on the market The increasing doubts about the claims of market observers could lead to increased volatility in the bond market. Investors may increasingly turn away from government bonds and look for alternative investment options, which will impact returns and...
Why Investors Should Stop Believing Claims About Peak Bond Yields
How www.handelszeitung.ch reports, investors are increasingly doubtful about market observers' claims that bond yields have peaked. Last year, the yield on the 10-year U.S. Treasury note fell more than 0.5% after reaching a peak of 4% in October. Credit assets appeared more attractive than they had been since 2009, and the possibility of an impending recession seemed certain.
Impact on the market
Growing doubts about market observers' claims could lead to increased volatility in the bond market. Investors may increasingly turn away from government bonds and seek alternative investment options, which could affect bond yields and prices.
Impact on the consumer
For consumers, this could mean interest rates on loans and mortgages rising as bond yields change. This could influence consumers' decisions regarding large financing.
Impact on the industry
The uncertainty in the bond market could also have an impact on the entire financial industry. Banks and financial institutions may have difficulty adjusting their investment strategies and optimizing their profits.
Read the source article at www.handelszeitung.ch