Government Bonds

2026 is already shaping up to be another volatile year for geopolitics, economies and markets. But one pocket stands out as a key beneficiary of the present backdrop.

After a week that saw 10-year Japanese government bonds (JGBs) hit yields not seen since the late 1990’s (and record highs for 30-year and 40-year maturities), alongside one of the most interesting Davos conferences in years, which was held in the shadow of the latest push by President Trump to “acquire” Greenland, it is helpful to take stock of where this leaves the global geopolitical landscape and financial markets.

With spreads well below long term averages and government bond curves pricing in what central banks are likely to do in the next few quarters, opportunities for capital gains through spread compression or sustained rallies in government bonds appear to be limited.

Alors que nous arrivons au terme d’une année où les actifs risqués ont résisté aux droits de douane américains et aux inquiétudes croissantes concernant les valorisations technologiques liées à l’IA, l’équipe de gestion de portefeuille de TwentyFour Asset Management retient sept questions clés qui, selon elle, définiront 2026 pour les investisseurs en obligations.

Softer US economic data means the pressures on UST yields now look more balanced, but headlines around President Trump’s pick for the next Fed chair are just one reason investors should expect rates volatility to continue.

Bien que les droits de douane aient considérablement dégradé les perspectives économiques et accru la volatilité sur les marchés des taux, l’assouplissement de la position des États-Unis a rétabli la confiance dans les rendements du crédit en 2025.

“Liberation Day” has landed, and not with a whimper. In extraordinary scenes in the Rose Garden of the White House, President Trump held up a board outlining the level of tariffs the US will impose on countries around the world, and in most cases they were worse than worst-case expectations.

There is little disagreement among investors and economists that the last few years have been highly unusual in many respects. An inflationary shock in developed markets, one of the fastest rate hiking cycles on record, the worst year in decades for government bonds (2022), and mild recessions with no movement in unemployment are just a few of the dynamics that have strayed from recent norms.

With 2023’s rally halted by the Fed’s hawkish messaging, Felipe Villarroel questions whether markets read the recent jobs data correctly and looks at what it means for terminal rate expectations.

A member of our Multi-Sector Bond team discusses recent market developments in Q4 2022 and provides his outlook for the year ahead.

Recent employment data suggests the US economy may escape with a soft landing, a welcome boost to market sentiment in the early days of 2023, says Eoin Walsh.

George Curtis looks at market conditions in the third quarter of 2022 and his expectations for the rest of the year.