Despite Low Yields, Investors Continue To Buy Sovereign Bonds

Despite the persistence of low yields across the fixed-income market, investors continued to plough money into the asset class last month pushing up prices in a reach for yield at any cost.

According to Credit Suisse’s Monthly Global Fixed Income Index Performance report, all fixed income indexes reported gains for the month of July extending year-to-date gains further. The US Government Index rose 0.41% in total returns last month taking year-to-date returns to 5.78%. Shorter tenor returns, specifically the 7 to 10 tenor bucket and 5 to 7 tenor bucket gained 0.31% and 0.21% respectively while the 10PLUS tenor bucket posted 2.22% in total returns taking year-to-date returns to 17.71% making it one of the best performing asset classes so far...