Investment insights from Capital Group
Prices for services sector soar, which may be harder to tame
As at 31/05/22. Source: U.S. Bureau of Labor Statistics
Treasury yield expectations show rate hikes largely priced-in
Change in 10-year Treasury yields (%)
Data as at 15/06/22. Source: Bloomberg
Income opportunity in bonds is the brightest in years
Yields of key fixed income markets (%)
Data as at 15/06/22. Sector yields above include Bloomberg Global Aggregate Index, Bloomberg Global Aggregate Corporate Index, Bloomberg Global High Yield Index and 50% JPMorgan EMBI Global Diversified Index / 50% JPMorgan GBI-EM Global Diversified Index blend. Period of time considered from 2020 to present. Dates for lows from top to bottom in chart shown are: 04/08/20, 31/12/20, 06/07/21 and 04/01/21. Sources: Bloomberg, JPMorgan
Higher yields have boosted total returns
Yields as at 15/06/22. Returns as at 31/05/22 in USD terms. Data goes back to 2000 for all sectors except for emerging markets debt, which goes back to 2003. Based on average monthly returns for each sector when in a +/- 0.30% range of yield to worst. Sector yields above include Bloomberg Global Aggregate Index, Bloomberg Global Aggregate Corporate Index, Bloomberg Global High Yield Index and 50% JPMorgan EMBI Global Diversified Index / 50% JPMorgan GBI-EM Global Diversified Index blend. Sources: Capital Group, Bloomberg
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