Lower bond yields ahead?

With all the connotations and effects that come with bond buyers prevailing as the more aggressive, I see bond yields declining into the next year.

The figures in the chart below denote the percentage that the U.S. 2 year government bond yield is trading above its 50 month moving average.

Obviously, taking a larger view and trying to get the bigger call correct.

Allowing for convergence, I think this yield makes its way towards the 2.75% region in 12 months time.

It’s currently 4.43%

February 7, 2023

by Rob Zdravevski

rob@karriasset.com.au