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Bonds find favour with strategists in volatile times

Against an uncertain investing backdrop, fixed-income instruments like US Treasuries and emerging market bonds are preferred

Tay Peck Gek

Tay Peck Gek

Published Tue, Jun 11, 2019 · 09:50 PM

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    Singapore

    BONDS are the flavour of the month for market and investment strategists. Against a volatile and uncertain investing backdrop, various types of fixed income instruments ranging from short-term US Treasuries to emerging market bonds in hard currency are preferred for the second half of the year.

    European private bank LGT noted that after trade conflicts between the US and its major trading partners flared up again, market participants hedged their portfolios with 10-year US government bonds. This sent the yields for the US Treasuries down to multi-month lows. Demand for US Treasuries drives up prices of the bonds and pushes down yields.

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