Market Insight: Is now the right time to get into bonds?
The yields on long-term bonds have risen to decade highs. Whether or not it is worth buying depends on the investment strategy, says Andrea Cünnen.
Global bond markets are drawing investor attention as long-term bond prices have dropped, driving yields to notable highs. In Germany, the 30-year Bund yield reached nearly 3.80%, a level not seen in 15 years, while US and Japan also saw yields rise to new decade highs. This development has both concerning implications, such as increased state debt burden, and potential opportunities for investors seeking high yields.
The suitability of investing in bonds now depends on individual strategies, with long-term buy-and-hold investors facing minimal risk of default in countries like Germany, the US, and Japan, but potentially exposed to currency fluctuations.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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