Opinion
Opinion

Long Yield Is Expected to Be High for Decade(s) to Come

Long Yield Is Expected to Be High for Decade(s) to Come
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Commentary

The most impactful market changes these days would no doubt be the surge of long-tenor sovereign yield. Although the market pays heavy attention to the U.S., most other non-U.S. sovereigns have experienced a similar sharp surge: Over the past two quarters (from end Q1 to end Q3), U.S., Canada, and Australia all have their 10-year sovereign yields up by 1.25 percent, the UK is up by slightly over 1 percent while New Zealand is up by 1.3 percent; even Eurozone and Japan have theirs up by 0.5 percent. Note their corresponding policy rates have generally been up by no more than 1 percent.

Law Ka-chung
Law Ka-chung
Author
Law Ka-chung is a commentator on global macroeconomics and markets. He has been writing numerous newspaper and magazine columns and talking about markets on various TV, radio, and online channels in Hong Kong since 2005. He covers all types of economics and finance topics in the United States, Europe, and Asia, ranging from macroeconomic theories to market outlook for equities, currencies, rates, yields, and commodities. He has been the chief economist and strategist at a Hong Kong branch of the fifth-largest Chinese bank for more than 12 years. He has a Ph.D. in Economics, MSc in Mathematics, and MSc in Astrophysics.
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