Yields on US Treasuries remain on upward trend

Dire predictions that the yield on US Treasuries will climb to 5.5% or even 6% are extreme, accordin...

Dire predictions that the yield on US Treasuries will climb to 5.5% or even 6% are extreme, according to the manager of Hendersons' Horizon Global Bond fund, Robert Thomas. The yield, which was 4.23% at the time of writing, would make holdings in sub-investment grade and investment grade bonds unattractive if it climbed to 5.5%. Analysts expect the yield to continue to rise, but to stop short of the worst predictions being made for 2005. "Before we would get to that stage you would have a lot of money flooding back to the US," Thomas confirms. F&C Asset Management has a house view that...