He’s been badmouthing Treasury bonds since 2020, but now ‘the big fat cushion’ of 5.25% yields is turning this strategist bullish

A strategist who has been critical of US Treasury bonds since 2020 has changed their stance, now finding value in them. According to MarketWatch, this shift is due to the "big fat cushion" of 5.25% yields. The strategist, Bianco, believes that 5% returns on bonds and 6% on stocks are more realistic after a period of artificially low interest rates.

Rising US Treasury yields have had a negative impact on stock markets, including South Korea's KOSPI index, which has fallen for three consecutive sessions. Yonhap News reports that the 30-year US Treasury yield has reached its highest level in 24 years, at over 5.6%, while the 10-year yield is at its highest level since 2007, above 5.2%.

Global bond yields have risen to multi-year highs amid concerns about inflation and potential further interest rate hikes. This has led to a decline in investor sentiment, with foreigners and institutions selling a net 2.05 trillion won and 767.97 billion, respectively, in the South Korean market.

Brief written by urgent.news from MarketWatch Top, Yonhap News — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.