Global government bond prices recovered as yields near multi-decade highs,
despite lingering energy-price risks. UK 10-year gilt yield fell 5bp to 5.18%
after earlier touching its highest since August 2007; Germany 10-year bund yield
slipped 2bp and the US 10-year Treasury yield fell 1bp to 4.77%. Traders
monitored remarks from Trump on Wednesday, who hinted the latest US-Iran round
would be short-lived. Oil's earlier spike had stoked inflation concerns and
rate-hike bets that pushed global yields higher; oil has since retreated. Kevin
Zhao, head of global sovereign fixed income and FX at UBS Asset Management, said
Germany's 30-year bund yield rose to 3.84% this week, its highest this year, and
that he has been buying the long end of the German curve. "That yield level is
attractive," he said. "In political crisis or high-tension situations, German
bunds can act as a good safe haven."
