Lates News

Goldman Sachs strategist stated that the next pain point for bond traders may occur in the 5-year part of the yield curve. Strategists George Cole and William Marshall wrote in a report that the 5-year bonds of Japan and Germany are particularly vulnerable, with the former heading towards a longer tightening cycle and the latter experiencing improving economic prospects. Shorter-term bonds are heavily influenced by bets on monetary policy, while longer-term bonds, such as those with a 10-year maturity, are often more sensitive to inflation and deficit concerns. This makes the 5-year bond a "sweet spot" in the global bond market.