Treasuries Losing Yield Advantage vs Gilts, EGBs: Amherst
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Source: BFW (Bloomberg First Word)
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Robert Sinche (Pierpont Securities Inc)
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UUID: 7947283
(Bloomberg) -- FX-hedged yields on 10-year bonds of France, Germany and the U.K. now exceed the U.S. 10-year yield, removing a source of support for Treasuries, Amherst Pierpont Securities strategist Robert Sinche says in July 18 note.
- Treasuries over past two years were supported by “high yield status,” particularly at long end of curve; 10Y yield at 2.29% now is topped by fx-hedged 10Y yields of France at 2.82%, Germany at 2.55%, U.K. at 2.45%
- Flattening of UST yield curve and steepening of U.K. and euro-zone curves have made “effective hedged yields in foreign markets more attractive”
- Flatter yield curves in Canada and Japan leave their bonds relatively unattractive on hedged-yield comparison
- Related story: The Great U.S. Bond Rush Is Seen Fading as Overseas Yields Rise
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Robert Sinche (Pierpont Securities Inc)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283