Index-linked paper looks overpriced in UK and US

US and UK bonds look fair value but index-linked paper in both countries appears overvalued, accordi...

US and UK bonds look fair value but index-linked paper in both countries appears overvalued, according to Henderson Global Investors. While US bonds made some gains following the release of a recent disappointing US employment report, they fell back at the start of this month after the Federal Reserve raised interest rates. Hendersons believes Treasuries are now close to fair value but there is a risk yields will overshoot at some point as the Fed continues to tighten US monetary policy. As was widely expected, the Federal Reserve raised US interest rates by 25 basis points to 1.25% at t...