Managing a portfolio of the investment and consulting company Capital Economics Sasha Chorley in an interview with CNBC called on investors to give to debt to countries from around the world, noting that now the best moment for this over the past six years.
According to Chorley, the state bond market is currently the most attractive for investors – both private and institutional. In recent weeks, there is a sharp increase in the profitability of state securities of many countries, primarily 10-year treasury bonds of the United States, traditionally considered a reliability reference.
In this case, investors demonstrate skepticism about investments in the State Dong and began to massively sell it, which led to an increase in profitability. One of the main reasons was concerned about the sharp increase in inflation, which could level the yield.
Inflation in some countries really exceeds the target level or approaches this, but this trend is observed for some time, the financier notes. In addition, growth occurs gradually, which should give confidence to buyers of the public debt.
The position of Chorley is not dominant on the market, the publication notes. Despite his calls, as well as the statements by the Federal Reserve System of the United States and the Bank of England that the regulators of these countries are not going to tighten the monetary policy and turn the quantitative mitigation program, investors continue to sell public bondings. According to Capital Economics, by the end of the year, the yield of 10-year treasury papers can grow from 1.5-1.75 to 2.25-2.5 percent.