Bond yields globally have fallen over the past year other than in the U.S., Canada and Emerging Markets

We haven’t written about bond yields for some time. Government bond yields have largely been falling despite Central Banks announcing reductions or end to their bond buying programmes.

The only notable countries where yields are still up over the past year are the United States, Canada, Italy and Emerging Markets.

It wouldn’t appear that the market is anticipating interest rate rises in the short term. We will write about that in a few days but in the meanwhile here are 10-year government bond yields as of 14th July 2018 (figure in brackets indicate absolute 1-year change),

U.S. and Canada

United States 2.83% (+51 bps)
Canada 2.13% (+24 bps)

Major Markets (excluding the U.S., Canada and the Eurozone)

Japan 0.04% (-4 bps)
United Kingdom 1.27% (-6 bps)
Switzerland -0.06% (-7 bps)

Eurozone

Germany 0.28% (-26 bps)
France 0.62% (-24 bps)
Portugal 1.74% (-141 bps)
Italy 2.56% (+32 bps)
Netherlands 0.44% (-26 bps)
Spain 1.26% (-33 bps)
Greece 3.86% (-143 bps)

Australia and New Zealand

Australia 2.64% (-10 bps)
New Zealand 2.83% (-12 bps)

Emerging Markets

Brazil 11.35% (+118 bps)
India 7.79% (+134 bps)
Mexico 7.78% (+96 bps)

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