Really low real yields.

Columbia Threadneedle Investments
By September 9, 2021 14:52

Really low real yields.

In Credit  AUGUST 2021

As we start a new month, we can reflect on another better week and month for core government bonds.

US yields fell by around 25bps in July. The fall was led by declining real yields, which reached an all-time low (since TIPS were introduced in 1996) last week of around -1.18%. Inflation expectations travelled in the opposite direction and rose from around 2.3% at the end of June to 2.4% today at the 10-year point (see chart of the week). Other markets were also better with German Bund yields lower by a similar amount.

While economic data has generally been good (eg, Chicago PMI, Eurozone GDP), there is nervousness about the spread of the delta variant of Covid (in places such as Florida in the US) and whether this will set back the recovery as restrictions are introduced. This week brings the US Employment / Payroll report on Friday (market consensus expects a very strong 900k jobs to be created; this would be highest since August of last year). This will be last employment report before the Jackson Hole symposium. That gathering has been earmarked as a likely time for a strong signal on ‘taper timing’ in the US from the US Federal Reserve.

Asset Manager

Uw succes is onze prioriteit

Miljoenen mensen wereldwijd laten het beheer van hun belegging aan ons over. Particuliere, professionele en institutionele beleggers vertrouwen in totaal €500bn (per 30 juni 2021) aan ons toe. Wij stellen alles in het werk om consistent de financiële behoeften en doelstellingen van onze cliënten te vervullen. Uw succes is onze prioriteit.

Prosper van Zanten
Head of Benelux Distribution
Tel: +31 (0)2 262 4022

LinkedIn:Threadneedle Investments



Columbia Threadneedle Investments
By September 9, 2021 14:52