VP Bank says government bond sell-off offers higher yields for investors
TLT•VP Bank’s October 23 analysis said a global government bond sell-off has lifted yields, with U.S. 10-year yields near 5% and French 10-year yields at 5.1%.
1. Yields rise as bonds sell off
VP Bank said stronger-than-expected growth and concerns over government debt are potential drivers of a global government bond sell-off that has raised borrowing costs. U.S. 10-year government bond yields rose just under one percentage point since the start of the year to around 5%, while French 10-year yields climbed around 1.5 percentage points to 5.1%. The bank said higher current interest income offers investors a buffer against potential further bond price declines.
