The end or the beginning of the end? Thoughts on last weeks global rout in bonds

Chad Slater

Ellerston Capital

After many previous ‘false bottoms’, is it possible we are finally seeing the point where global government bond yields can go no lower, and with this, the end to one of the longest, but least talked about bull markets in history? German 10 year bond yields have surged this past week, rising from 0.07% (and no, that is not a typo) to 0.65%, which by any measure is still incredibly low, but a lot higher than last week. We would put this down to the bond market coming to the realisation that growth and inflation aren't negative in Europe this year, combined with crowded positioning. So is this the end of the 35 year bond bull market? Most likely not, but it would suggest that the long held and thus far very successful strategy of simply being long bonds is nearing an end. For more on this, please read the full blog here: (VIEW LINK)


Chad Slater
Co Head Global Equities (ex-Asia)
Ellerston Capital

Chad co-founded Morphic Asset Management in 2012. As a stock picker Chad is also a generalist but has strong regional knowledge of Europe and the Americas. He has also been awarded the CFA Charter.

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