Short-Dated and Inflation-Linked Bonds Look Attractive Given High Yields
Dow Jones
Yesterday
1409 GMT - Short-term bonds and inflation-linked bonds look more favorable than other fixed-income assets as sovereign bond yields stay close to multi-year highs, eToro's Lale Akoner says in a note. U.S. 10-year Treasury yields earlier hit 4.818%, their highest level since November 2023, LSEG data show. Ten-year gilt yields hit a 19-year high of 5.294% while 10-year German Bund yields reached their highest since 2011 at 3.395%. Long-term bond yields could stay elevated due to heavy debt supply by governments and AI-linked companies, making long-term bonds less appealing, she says. Given the increased inflation risk due to high energy costs, short-dated bonds and inflation-linked bonds look more attractive, Akoner says.
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