Long-term bonds are the focus of investor anxiety, with concerns from inf to a
debt-fueled AI boom driving a global rise in sovereign yields. This week the
30-year US Treasury yield reached its highest since 2007, French borrowing costs
hit levels not seen since 2008, German yields are near 2011 highs, UK yields are
approaching 6%, and like-maturity Japanese yields are near record highs. While
domestic factors differ, the move reflects global structural forces: a more
fragmented world raising the risk of supply shocks and persistent inf; worries
governments may be unable to rein in spending, sustaining higher rates; and
market-structure and demographic shifts that have eroded formerly stable buyer
demand. AXA IM Core CIO Chris Iggo said: "It's hard to judge what yield level
would improve total return prospects for long-dated fixed income. Only a sudden
weakening in economic data or some external shock would change that picture; the
The latter appears more likely."
