Bond Bull Market Rumbles On For Now

While 2-year government bond yields have jumped in Italy, Spain and the United States in 2018, longer duration bonds have been largely unaffected by the recent volatility. Short-term yields are typically driven by political machinations and central bank jawboning, while the market sets the long-term rate. The recent political fuss emanating from certain southern Eurozone countries has spiked bond market volatility and caused a certain amount of angst amongst the fixed income trading community. However, the longer end of the market has barely moved. We are paying attention to market developments as they unfold, but continue to hold the view that long duration bonds will provide portfolio diversification and a positive return during the next time down for the stock market.

 
Euro bonds.jpg
 

Rising short-term bond yields and stable or falling longer-term bond yields simply means the yield curve is inverting and signalling the next recession is approaching.

At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at brian@secureinvestments.ie or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.

Disclaimer

The information contained herein should not be taken as an offer of investment advice or encourage the purchase or sale of of any particular security or investment. It is provided for information purposes only. Secure Investments and its content providers makes no representation or warranty of any kind with respect to the services described, analysis or information obtained arising from use of the pages on this website. Information provided is obtained from sources deemed to be reliable and is provided solely on a best efforts basis. Secure Investments and its content providers do not guarantee the completeness or accuracy of such information and do not accept any liability for any loss or damage arising out of negligence or otherwise as a result of use or reliance on this information, whether authorised or not. The use of the website is at the user's sole risk. Not all recommendations are necessarily suitable for all investors and investment policy must be tailored to suit the circumstances of the individual. We recommend that readers consult their professional adviser before acting on any advice or recommendation on this website. The value of any investment may fall as well as rise and you may not recover the full amount originally invested. Past performance or simulated performance is no guarantee of future investment returns. The value of your investment may be subject to exchange rate fluctuations which may have a positive or adverse effect on the price or income or the securities.