With long-term yields reaching or even exceeding 5%, US bonds are becoming increasingly attractive again. In an analysis published in L’Agefi, Daniel Varela, Chief Investment Officer at Piguet Galland, examines the opportunities and risks associated with this market.
While long-term inflation expectations remain relatively stable, real yields on US bonds have reached particularly attractive levels.
Despite uncertainties surrounding US government debt and the direction of monetary policy, Daniel Varela highlights the structural strengths of the US bond market: its depth, liquidity and the central role of the US dollar.
Beyond US Treasuries, high-quality corporate bonds also present opportunities, with yields potentially exceeding 6%.
According to Daniel Varela, current yield levels offer more attractive compensation for risk, alongside opportunities for portfolio diversification and potential capital appreciation.
Why are US bonds becoming attractive again? What risks should investors be watching?
Read Daniel Varela’s full analysis in L’Agefi (french only)