Rising Yields Reduce Stabilizing Role of Long-Dated Treasurys in Portfolios -- Market Talk

Dow Jones12-16 18:28

1028 GMT - Rising developed-market bond yields underscore BlackRock's view that traditional diversifiers such as long-dated Treasurys offer a diminished portfolio ballast. The surge in long-term bond yields partly reflects heightened concerns about loose fiscal policy and deteriorating fiscal outlooks, BlackRock says in a note. Japanese 30-year bond yields hit record highs earlier this month and are up more than 100 basis points this year, it says. "The latest move up was triggered by a Japanese government fiscal spending package, as well as the Bank of Japan signaling a potential rate hike this week." Central banks in Australia and Canada have also shifted their tone on rates, either flagging an end to cuts or the potential for a hike. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 16, 2025 05:28 ET (10:28 GMT)

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