Role of Long-duration Government Bonds Seen in Transformation

Dow Jones13:42

0542 GMT - Higher yields have changed the role of long-duration government bonds in portfolios, making them less reliable in risk-off periods but also making them offer more opportunities, BlackRock Investment Institute says in a note. "Greater uncertainty about inflation, higher government borrowing and rising term premia mean they no longer provide the same reliable ballast during risk-off episodes," it says. At the same time, investors have far more options for generating income than they did just a few years ago, BlackRock says. Its analysis shows that over 80% of major global fixed income assets now yield above 4%; five years ago the proportion was just 6%.(emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 15, 2026 01:42 ET (05:42 GMT)

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