Credit Suisse Sees Risk U.S. Yields Will Stay Low for Some Time
- Demand for government debt, low inflation to keep yields down
- Deputy CIO Varnholt speaks in Bloomberg TV interview
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Investors may be underestimating the odds that yields on U.S. government bonds will stay low for some years to come, according to Credit Suisse Group AG.
“That’s a scenario which investors may not be fully pricing in or be prepared for, and it is actually a serious possibility when you look at the medium-term outlook, despite the central bank rate hikes that we do expect for the remainder of this year,” Burkhard Varnholt, the Swiss bank’s deputy chief investment officer, said Monday on Bloomberg Television.