Sovereign yields rise to levels last seen nearly 20 years ago, Groupama Asset Management says
TLT•Sovereign bond yields have reached levels last seen nearly 20 years ago as bond market uncertainty rises. Persistently higher interest rates are raising concerns about government deficits and debt, while inflation pressures and geopolitical tensions remain factors for central bank decisions.
1. Yields and policy uncertainty
Sovereign bond yields have risen to levels last seen nearly 20 years ago, Groupama Asset Management said, citing heightened bond market uncertainty. Persistently higher interest rates are intensifying concerns over the sustainability of government deficits and debt. Federal Reserve and European Central Bank decisions remain sensitive to inflation pressures fueled by rising energy prices and persistent geopolitical tensions.
2. Fed outlook
Kevin Warsh, who became Federal Reserve chair in May 2026, seeks less predictable US monetary policy, adding uncertainty and volatility, the brief said.
