The report argues that bond yields are poised to trend lower as the initial shock of high energy prices fades and central bank rhetoric begins to soften. UBS favors extending duration in European bonds while maintaining a shorter-term focus for the US and UK markets.
Key Takeaways
- 1.Bond yields are expected to trend lower through the second half of the year as central bank rhetoric softens and economic re-acceleration fails to materialize.
- 2.Investment preference diverges by region: favor longer maturities in Europe, but stick to short-to-intermediate maturities in the US and UK.
Table of Contents
- US Treasuries: Short and sweet
- Europe: Longer maturities well supported
- UK: The 'Maradona effect'
- Japan: On a different path
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Tom NashFrederick Mellors
Securities
German BundsUS Treasuries
Themes
Central bank hawkishness vs. falling inflationFiscal policy riskGlobal bond yield decoupling
Regions
EuropeGlobalUnited StatesUKJapan