A Global Snapshot Of Government Bond Yields

View from the Observation Deck  
  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 despite the fact that the current economic expansion, the longest in history, has lasted from July 2009 to date.  
  3. The yield on the U.S. 10-year Treasury-note closed at 1.16% on 3/2/20, 493 basis points below its historical average yield of 6.09% since 1/5/62, according to Bloomberg.
  4. As indicated in the table above, many countries have negative-yielding sovereign debt trading in the market. 
  5. The volume of negative-yielding debt currently exceeds $14 trillion worldwide, according to Bloomberg. 
  6. Yields could trend lower due to the spreading of the coronavirus (COVID-19). The Federal Reserve initiated a 50 basis point rate cut today (3/3/20) to help mitigate any economic fallout from the virus. 
  7. With volatility on the rise, particularly in the equities markets, a climate of low interest rates and relatively low inflation likely suits bond investors just fine.    

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework.  Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.  

Download a PDF of this post, please click here.
Posted on Tuesday, March 3, 2020 @ 11:01 AM

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.