Storebrand raises global government bond duration to neutral as AI concerns drive yields lower
TLT•Storebrand Asset Management raised global government bond duration to neutral from underweight in its November 2026 allocation report. Global government bonds gained nearly 2% in October as AI investment concerns drove demand for US government bonds.
1. Bond allocation change
Storebrand Asset Management raised global government bond duration to neutral from underweight in its November 2026 allocation report. Norwegian and Swedish government bond duration remained underweight.
2. Regional market details
Markets priced a roughly 40% probability of a Norwegian rate increase in December. French 10-year yield spreads over Germany exceeded 170 basis points, their widest since 2011, as concerns over government debt persisted.
3. Equity allocations
Global equities remained neutral, while emerging-market equities retained an overweight despite falling nearly 8% in October.
