Black Swan Bunds Aside, SocGen Sees Lower Long-Term Yield
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Bond bulls, don’t despair. The global bond selloff spurred by a slide in German bunds is a black swan event that won’t derail the outlook for low yields longer term, according to Societe Generale SA.
Treasuries rallied for a second day Friday along with sovereign debt in Australia and Japan as the highest yields this year lured investors back to the securities. Anybody buying bonds now still needs to be wary though, according to Societe Generale, as there may be another leg-up in yields after Friday’s U.S. payroll report.