Global Bond Yields Price in Further Central Bank Rate Hikes

Dow Jones06-25 18:42

1042 GMT - The surge in energy prices has driven a sharp selloff in the core rates with U.S. Treasurys, German Bunds and U.K. gilts now pricing 30-80 basis points higher than at the end of February, and markets pricing further hikes, Federated Hermes' Yulia di Mambro, says in a note. "The pace and scale of these moves have briefly pushed most fixed income indices into negative total return territory," the fixed income portfolio manager says. Short-duration credit is a notable exception, offering higher running yields and limited interest-rate sensitivity keeping returns positive, she says. Longer-dated debt might appear more appealing, such as the 30-year U.S. Treasury, but the outlook remains uncertain particularly given inflation volatility, she writes, considering the one- to three-year segment as "particularly attractive." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 25, 2026 06:42 ET (10:42 GMT)

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