Geikie-Cobb warns bund yields to spike

clock

F&C Thames River bond duo Peter Geikie-Cobb and Paul Thursby have warned German bunds are ‘extraordinarily' overvalued and in line for a major correction.

The flight to safety out of equities into safe havens has driven German bond yields to record lows, while treasuries and gilts have also seen prices soar and yields reach extreme lows. Two weeks ago, 10-year German bund yields hit a record low of 1.6% as investors ran for cover, although they have recovered some way since then, trading at 2.07% today (Tuesday). Last week Old Mutual Asset Managers’ Stewart Cowley said the global bond market is in the last throes of a rally, even as the Federal Reserve looks to cut yields via Operation Twist. Geikie-Cobb, co-manager of the group’s £9...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Almost half of UK investors using social media for financial advice

Almost half of UK investors using social media for financial advice

Many sources 'unregulated and unverified’

Sorin Dojan
clock 23 June 2025 • 2 min read
Investment Week reveals winners of Fund Manager of the Year Awards 2025

Investment Week reveals winners of Fund Manager of the Year Awards 2025

Celebrating 30th anniversary of Investment Week

Katrina Lloyd
clock 20 June 2025 • 6 min read
Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Partner Insight: A full spectrum of 'sustainability focus' labelled funds

Piers Hillier and Ed Venner, Royal London Asset Management
clock 20 June 2025 • 4 min read
Trustpilot
Loading page