However, ‘materially higher’ yields from current levels can lead to weakness in credit spreads and equities
[SINGAPORE] Equity investors may fret over the spike in bond yields, but fixed-income investors – at least those looking to lock in higher bond returns – have reason to celebrate.
Daniel Ivascyn, Pimco group chief investment officer, said that for bond investors, higher real yields “should be something exciting”.
“For those who have been investing in fixed-income markets since the global financial crisis, these (current) yields feel very high.”