No matter how ramshackle or indebted the country, buying its bonds is rarely a bad idea, says Matthew Lynn.
Investors have snapped up Iraqi government bonds yielding just 6.75%. If they’ll ignore the obvious risks for such a small return, asks John Stepek, what else are they ignoring?
The Bank of Japan has already bought vast amounts of Japanese government bonds over the past four years as part of its plan to lift Japan’s inflation rate to around 2%.
Many people think there’s no bubble in the bond market because investors aren’t excited enough. But boring markets can crash just as heavily as exciting ones, says John Stepek.
Macron’s win is a victory for the status quo, says Hugh Hendry, which mans European sovereign bon yields will start to rise.
The world’s continuing quantitative easing programmes have contributed to the lack of volatility in the US Treasury bond market, which is at a three-year low.
Serial defaulter Argentina has issued a 100-year bond. Investors beware, says John Stepek. It’s the sort of thing you can only get away with at the top of the market.
Investors have piled into Argentina’s latest dodgy debt issuance. But who would buy this stuff, asks John Stepek.
With inflation creeping up, investors should be on their guard, says Merryn Somerset Webb.
Gilt yields have been steady for a while now, says Alice Gråhns. But that can’t last much longer.
That bonds are so overvalued spells trouble for investors, says John Stepek. But thanks to the passive investing hype, that trouble could be about to turn into a disaster.