Sovereign bond yields hit six-year low

Portfolio-Bonds-Fixed-Income-Performance-UK-700x450.jpgBond yields have hit a record low in the developed world amid worries about the US delaying interest rates, negative rates and global political uncertainty.

The Bloomberg’ global developed sovereign bond index dropped to 0.62 per cent, its lowest level since 2010 as investors opt for the safe havens of government debt.

In the UK, the yield on 10-year UK bonds dropped to 1.26 per cent from 1.43 per cent last week. Only the 30-year maturity bonds have a higher yield of 2.1 per cent.

In the eurozone, yields are currently negative on all bonds of five-year terms and below.

A 10-year eurozone bond pays just 0.08 per cent while a 30-year bond has a yield of 0.74 per cent, which fell from 0.9 per cent last week.

In the US, a 10-year bond yield currently pays 1.72 per cent while in Japan it yields –0.12 per cent.