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. As indicated in the table above, government bond yields have fallen notably year-to-date in a number of countries.  
  3. The yield on the U.S. 10-year Treasury-note closed at 0.60% on 7/22/20, 546 basis points below its historical average yield of 6.06% 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. As of 7/7/20, the total amount of negative-yielding debt exceeded $12 trillion worldwide, according to Reuters.
  6. The low interest rate and bond yield climate has inspired some government leaders to issue sovereign debt in extended maturities. Austria recently sold two billion euros ($2.3 billion) worth of its 100-year bond yielding 0.88% and there was investor demand for nine times that amount, according to Reuters.

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Posted on Thursday, July 23, 2020 @ 2:10 PM

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.