United States Yields
The US faces the same economic challenges as the rest of the developed world: deficient demand that may endure for a generation. The question is whether its modest demographic advantage will prevent an infection of negative interest rates reaching its shores.
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Yield curve valuation suggests short 30-year and long 10-year on a relative basis.
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The negative yields on inflation bonds reflect their embedded protection against deflation and offer little benefit against inflation at current prices.
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Corporate spreads are narrow and are lower than any period since the Great Recession of 2008, which suggests corporate bonds offer poor value.
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Corporate yields offer a compelling relative value trade with a long 7-year and short 5-year position.
Disclaimer: All positions are suggestive of relative value and not intended as a recommendation or investment advice. Consult an investment advisor before implementing any investment strategy.