High Sovereign Bond Yields Making Equity Investors Uneasy
Dow Jones09-28 13:38
0538 GMT - The week has started with a renewed advance in oil prices, as the U.S. and Iran are still talking with no resolution in sight. Bonds are under pressure, and multi-decade-high sovereign yields are making equity investors uncomfortable, says Ipek Ozkardeskaya, senior analyst at Swissquote. Yields at current levels are starting to look appealing--an appeal that could encourage outflows from equities and inflows into safer bonds, she says. On the other hand, investors are warming up to the idea that the global economy has now shifted to a structurally higher inflation regime, so it might be better to continue waiting, she adds.
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