2023-08-31 12:02:44
“Stenstaden”, the old town of Sundsvall, is worth seeing. The municipality is now issuing a bond. Image: Getty
On the bond markets, hopes have grown that bond prices will not fall any further. Meanwhile, fund boutique Evli is promoting the higher yields on Scandinavian interest-bearing securities.
The development on the bond markets was not characterized by sunshine this summer either. In the past four weeks, ETFs on government bonds from the euro area have recorded an average increase of 0.1 percent. However, this is due to the fact that in the past few days yields have fallen again as prices have risen: that of the ten-year American bond to 4.098 percent and that of the federal bond to 2.50 percent. However, the US yield had previously risen to a 16-year high and the Bund had also scratched a 12-year high.
Most recently, it was weaker-than-expected labor market data from the USA that strengthened the expectation that the rising interest rates and yields (and the falling prices) finally had to come to an end. At the end of last week, Commerzbank stated that the tide seemed to be turning after American bonds had joined the Bund’s recent rally due to poorer growth prospects. And some US money managers believe Treasury bonds look pretty attractive at current yield levels, especially if inflation starts to come down.
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