Key points
- We maintain our preference for short-term bonds even after the rise in long-term yields.
- Global equity markets stabilized after last week's selloff. The Italy versus Germany government bond yield spread hit the widest in over five years.
- This week marks the peak of third-quarter earnings season in the U.S. The impact of trade conflict and a stronger dollar will be in focus.
Long-term U.S. Treasuries have led a global government bond selloff over the past few months. Is it time to add exposure to longer-term bonds, as prices have fallen and yields risen?