Bond Veteran Jim Bianco Still Bullish As Yields Soar
A move higher in oil is putting even more pressure on bonds, with yields hitting new milestones in a number of markets including the UK and the US. The UK’s long-term borrowing costs hit 6% for the first time in almost three decades whilst the 10-year Treasury note climbed to the highest since 2002. It comes as government debt has been flailing around the world as uncertainty — tied to the war in…
The recent surge in oil prices is exerting additional pressure on bond yields, with notable milestones being set in various markets, such as the UK and the US. The UK's long-term borrowing costs have reached 6% for the first time in nearly three decades, while the 10-year Treasury note has climbed to its highest level since 2002.
This upward trend in bond yields is primarily attributed to global government debt volatility, which has been exacerbated by geopolitical uncertainties stemming from the ongoing war in the Middle East. Investors are increasingly anticipating that central banks may further increase interest rates in response to these challenges. However, Jim Bianco, a seasoned bond expert and the President and Founder of Bianco Research, remains optimistic about US sovereign debt.
Bianco's bullish outlook is rooted in the potential for value generation, as he discusses in an interview with Caroline Hepker and Nathan Hager.
Brief written by urgent.news from Bloomberg's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
