Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income, explains that while G3 yields have ticked higher recently, there is mounting evidence to support a “lower for longer” thesis for developed market interest rates. Specifically, he expects the central tendency for the 10-year U.S. Treasury yield to drop towards 2.5% over the long term, with correspondingly low rate ranges for 10-year bunds and JGBs.
