US Treasury Yields Surge as Global Risk Asset Yields Decline
James Picerno | Sep 12, 2023 07:49AM ET
Current yields continue to show signs of peaking, based on a broad review of the major asset classes via a set of proxy ETFs. In each of our periodic updates of yields so far this year, the numbers reflect a decline from the previous review.
Today’s figures extend the trend. The average yield for global risk assets dipped again to 3.67% (as of Sep. 11, 2023) from the previous update’s 3.76% (July 19, 2023). The peak for our irregular updates was 4.50% (Dec. 19, 2022).
While the trailing 12-month yield (according to Morningstar.com) for risk assets has been falling in 2023, US Treasury yields continue to rise. The 10-year Note, for instance, ticked up to 4.29%, well above the portfolio average in the table above.
Cherry-picking markets, however, still reflect unusually high trailing yields. The top payout rate in the table above is still FTSE International Government Inflation-Protected Bond ETF (NYSE:WIP), which boasts a trailing 12-month yield of 7.58%, Morningstar reports. Although that’s persistently eased this year, it’s still head and shoulders over the rest of the field. At the opposite extreme: is real estate ex-US (VNQI), which yields a thin 0.58%.
Payout rates in financial markets may be sliding, but there’s still an opportunity for potentially capturing relatively high yields. But here comes the standard caveat: Trailing payout yields for stocks and other risk assets listed above aren’t guaranteed (in contrast with current yields from government bonds for buy-and-hold investors). Keep in mind, too, the ever-present possibility that whatever you earn in yields via ETFs fund could be wiped out, and more, with lower share prices.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.