More Price Sensitive Buyers Could Keep Long-Dated Bond Yields Higher
Dow Jones
Yesterday
1105 GMT - A change in the profile of government bond investors from less price sensitive buyers such as central banks to more price sensitive investors could mean long-dated bond yields stay higher, Nuveen's Laura Cooper says in a note. Rising government bond issuance means investors are likely to demand extra compensation to absorb the additional supply, she says. Short-dated and medium-dated government bonds look more attractive than long-dated bonds as they offer "most of the income with far less exposure to a supply and demand story that has yet to be resolved."
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