Negative Yields in Government Bond Markets Maturity (years)

 

Source: BlackRock Investment Institute, Thomson Reuters. 19th June 2015. Note: for countries without bonds at all maturities we take the mid-point between the bonds with yields above/below zero.

  • A European Central Bank-led wall of monetary easing pushed bond yields into negative territory in many parts of Europe
  • A significant number of core European government bonds are still yielding below zero, despite some sharp bouts of volatility
  • So the hunt for income is as intense as ever. And, with yields set to remain low for longer in Europe and any rate rise in the US likely to be gradual, investors may need to expand their search beyond the developed markets

Question for your clients

  • How can I generate meaningful returns with Government bond yields so low?

To help start the conversation:

 

CARS ref: RSM-1033