Bond yields climbed in June as central bankers continued to insist on further interest rate hikes. This was true of both short and long-term yields in the US, Germany and the UK. The increase of almost 1 percentage point in UK 2-year bond yields was particularly striking. Yields in the UK are now higher than they were during the crisis triggered by the Truss government’s budget in September and October last year.
Please see Kempen’s Asset Allocation Outlook for July. The highlights this month are:
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance provides no guarantee for the future.