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  A Global Snapshot Of Government Bond Yields
Posted Under: Bond Market
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  1. Today's blog post shows the yields on a couple of benchmark government bond maturities from key countries/economies around the globe.
  2. Investors need to be cognizant of the fact that interest rates are still at extremely low levels. As indicated in the table above, government bond yields have fallen notably year-to-date in a number of countries.  
  3. Due largely to the economic fallout from the COVID-19 pandemic, the yields on the 2- and 10-year U.S. Treasury-notes (T-notes) are down over 100 basis points year-to-date. Government bond yields in Canada have essentially mirrored the decline in U.S. yields.  
  4. The yield on the U.S. 10-year T-note closed at 0.77% on 10/12/20, 526 basis points below its historical average yield of 6.03% since 1/5/62, according to Bloomberg.
  5. Federal Reserve Chairman Jerome Powell has indicated that the Federal Reserve is prepared to keep short-term interest rates low for the next three years if need be to reach its unemployment and inflation targets. 
  6. As indicated in the table above, many countries still have negative-yielding sovereign debt trading in the market.
  7. As of 7/27/20, the total amount of negative-yielding debt was nearly $15 trillion worldwide, according to Bloomberg.
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Posted on Tuesday, October 13, 2020 @ 12:55 PM • Post Link Share: 
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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