A Global Snapshot of Government Bond Yields

Bob Carey
Chief Market Strategist

Bio
X • LinkedIn

Blog Home

Send Us Your Comments And Questions

RSS Feed

A Global Snapshot of Government Bond Yields

Posted Under: Bond Market

View from the Observation Deck

Today's blog post shows the yields on a couple of benchmark government bond maturities from key countries/economies around the globe.
Investors need to be cognizant of the fact that interest rates are still at low levels relative to their historical averages.
The yield on the U.S. 10-year Treasury-note (T-note) closed at 1.47% on 9/4/19, that was 466 basis points (bps) below its historical average yield of 6.13% since 1/5/62, according to Bloomberg.
As indicated in the table above, many countries have negative-yielding sovereign debt trading in the market. While not included in the table, investors should be aware that there also happens to be negative-yielding corporate debt trading in the market.
The volume of negative-yielding debt exceeded $17 trillion at the close of August 2019, according to Bloomberg. It notes that 30% of all investment-grade bonds currently bear sub-zero yields.
Bond yields in Japan and parts of Europe are still in negative territory despite stimulus efforts from their respective central banks.
The absence of any inflationary pressure in the U.S., despite the acceleration in economic growth in 2018, and the exceptionally low interest rate climate in Europe and Japan has enabled the yield on the 10-year T-note to remain artificially low, in our opinion.
We have been waiting for interest rates and bond yields to normalize in the U.S. a while now. It looks as though we won't get there without some help from abroad, including a new trade deal between the U.S. and China.

This chart is for illustrative purposes only and not indicative of any actual investment.

Download a PDF of this post, please click here.

Posted on Thursday, September 5, 2019 @ 1:40 PM • Post Link

Printer Friendly

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.

Most Current Posts

<<< Newer Posts • Older Posts >>>

Search Posts

MARKET ANALYSIS

Market Commentary and Analysis
•	Market Commentary Video
•	Monthly Talking Points
•	Quarterly Newsletter
•	Market Observations

Subscribe To Receive Email

PREVIOUS POSTS
•	This Data Does Not Portend A Bear Market In Stocks
•	A Snapshot of Growth vs. Value Investing
•	Sector Performance Via Market Capitalization (Since Steel/Aluminum Tariffs Enacted)
•	How Bonds Have Fared This Millennium
•	Some Sectors Are More Global Than Others
•	Some Perspective On The Drop In Bond Yields
•	A Snapshot of Moving Averages
•	Internet Advertising Revenue Growing At A 20%-Plus Clip
•	Trump Rally (11/8/16-8/5/19) vs. Trump Tariffs (3/8/18-8/5/19)
•	A Correction ... and Nothing More