“Government Bond Yields Offer Attractive Investment Opportunities, Says Janus Henderson Group Study”

Government bond yields are now more attractive than at any time since 2007, and inflation is declining faster than expected, Bloomberg writes, citing a study by experts from the British investment company Janus Henderson Group. Against this background, investors will be able to benefit not only from high yields, but also through capital gains, as soon as global central banks begin to cut rates, Janus Henderson notes.

For government borrowers, the “golden opportunity” last year is over: global public debt rose by 7.6% in 2022 to a record $66.2 trillion, and the cost of servicing it jumped by 21%, the fastest growth since 1984. In the next three years, the value of global sovereign debt, according to Janus estimates, will double and reach $2.8 trillion by 2025. High interest rates are limiting spending and diverting money away from economically productive areas, said Jim Selinsky, head of global fixed income at Janus Henderson.