Long-dated government bonds, which punished buyers for much of the year, have
seen yields climb high enough to draw investors back to the long end. The
re-entry trade has drawn portfolio managers at JPMorgan Asset Management,
Robeco, Ninety One and Allianz Global Investors. In October, an index tracking
global government bonds maturing 10 years and longer returned 2.2%, easily
outperforming the flat showing of 1–3 year sovereigns and marking the first
month since February that long bonds beat short. JPMorgan AM global fixed income
head Bob Michele said the long end had been oversold and was deeply dislocated;
AJ Bell investment director Hilary Winn said she views the move as a pause
rather than a turning point and still prefers high-quality, short-duration
exposure over chasing a long-bond rebound.
