By Sharat Kotikalpudi
Today's bond yields are extremely low, and some multi-asset investors may be struggling to rationalize exposure to interest-rate driven assets such as government bonds. But past experience suggests that they can still be effective diversifiers, even at low yield levels.
As the world battles the COVID-19 pandemic, government bond yields have tumbled. US 10-year Treasury yields fell below 1% for the first time in history in early March, settling in the 60-70 basis-point range. 10-year UK gilt yields have hovered around historical lows of about 20 basis points. Meanwhile, 10-year yields in