TS Lombard recommends buying long-term sovereign bonds as bearish sentiment may dissipate.

TS Lombard states that the bearish sentiment that has led global long-term sovereign bonds to be one of the worst-performing fixed income assets this year may soon dissipate, making it worthwhile to buy these securities. Davide Oneglia, an economist at the London-based research firm, suggests that governments from Japan to the UK have managed to better balance the supply and demand of long-term bonds, supporting these securities and also planning buybacks, leading to a rectification of the situation. Rising debt and budget deficits have put pressure on these assets this year, but Oneglia believes that these factors should help alleviate concerns.