{"id":117420,"date":"2026-08-19T13:13:45","date_gmt":"2026-08-19T13:13:45","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/117420\/"},"modified":"2026-08-19T13:13:45","modified_gmt":"2026-08-19T13:13:45","slug":"short-dated-bonds-preferable-to-longer-end-amid-global-bond-rout-ubs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/117420\/","title":{"rendered":"Short-dated bonds preferable to longer end amid global bond rout: UBS"},"content":{"rendered":"<p>Longer-dated government debt has been hit particularly hard after a global bond sell-off drove yields to multi-decade highs on Tuesday. The 30-year Treasury yield is now hovering close to its highest level since 2007, while Japan&#8217;s 10-year bond yield reached its highest level in three decades. German 30-year bund yields hit their highest point since 2011 and rates on France&#8217;s 30-year bond reached their highest level since 2008. As the longer end of the yield curve looks increasingly capricious, short-term bonds may offer a solution to uncertainty later down the line, according to analysts at UBS. &#8220;The front end of the yield curve has stayed relatively anchored, and we do not think the rise in long-term yields invalidates the case for quality fixed income,&#8221; they wrote in a note published Wednesday. The analysts added that today&#8217;s higher yields offer a cushion against further rate increases before investors could experience a potential loss. UBS analysis indicates that the 2-year and 5-year Treasury notes would need to rise by around 100 to 230 basis points from current levels for falling bond prices to cancel out income returns. &#8220;With the long end of the curve more exposed to fiscal concerns, inflation uncertainty, and lower liquidity, we continue to see short- and medium-maturity quality bonds as attractive,&#8221; the strategists added. Fixed income strategists ascribe the sell-off in longer-dated debt that began in June to intensified concerns over a budget deficit that appears set to eclipse its 2025 level, persistently above-target inflation, and a rash of corporate debt issuance competing with Treasurys for investors&#8217; favor. As a result, many investors are turning to short-term investments , particularly ultra-short bond funds, amid persistent concerns that long-term bonds are no longer providing portfolio diversification. Ultra-short bond ETFs saw inflows of $12.8 billion in July, according to Morningstar Direct. \u2014 CNBC&#8217;s Jeff Cox and Cheryl Winokur Munk also contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"Longer-dated government debt has been hit particularly hard after a global bond sell-off drove yields to multi-decade highs&hellip;\n","protected":false},"author":2,"featured_media":117421,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[13692,2857,166,3338,1001,14756,1219,57189,57191,231,57190,223],"class_list":["post-117420","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-bonds","tag-breaking-news-markets","tag-business-news","tag-economic-events","tag-france","tag-government-debt","tag-japan","tag-jeff-cox","tag-jpmorgan-ultra-short-income-etf","tag-markets","tag-spdr-bloomberg-1-3-month-t-bill-etf","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117122354781970077","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/117420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=117420"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/117420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/117421"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=117420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=117420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=117420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}