[Global Bond Market Decline Slows as High Yields Attract Investors Back] Despite continued market caution over energy prices, global bond prices rebounded as some investors succumbed to temptation with yields near multi-decade highs. The yield on UK 10-year government bonds fell 5 basis points to 5.18%, after hitting its highest level since August 2007. Other markets saw more moderate movements, with the yield on German 10-year bonds declining slightly by 2 basis points and the yield on US 10-year Treasury bonds falling 1 basis point to 4.77%. Traders are closely watching comments from Trump on Wednesday, who suggested the latest round of conflict between the US and Iran would be short-lived. Oil prices had surged earlier this week, fueling inflation concerns and increasing market bets on interest rate hikes, driving global bond yields higher; however, oil prices have since retreated. Kevin Zhao, global head of sovereign fixed income and FX at UBS Asset Management, said he has been buying the long end of the German 30-year yield curve after the yield rose to 3.84% this week, its highest level this year. “This yield level is very attractive,” he said. “German government bonds can serve as a good safe-haven asset during political crises or periods of high tension.”
