What’s next for bond investors?

Bond yields have risen steadily in recent years.

This month, the 10-year gilt yield reached 5.4% - the highest level since 2007. Meanwhile the 30-year yield reached 5.9%, a level not seen since 1998.

Although rising yields reduce bond prices in the short term, higher starting yields offer more attractive risk-adjusted returns and provide a greater income cushion against further yield rises.

We remain well diversified within our bond exposure. This helps provide greater return stability and lower portfolio volatility as correlations with equity returns vary across markets and over time. 

Read our full summary on what the rise in bond yields means for investors, and our portfolios. 

Download here