Key facts
- Bond markets offer a "generational amount of yield" and it is time to buy debt.
- Potential returns of 7% to 8% in the US market over the next 12 months are expected.
- US 10-year yields were around 4.99% on Tuesday.
- US Treasury curve yields of 3% were last seen in 2002.
Bob Michele, head of global fixed income at J.P. Morgan Asset Management, stated on Tuesday that bond markets currently present a "generational amount of yield," making it an opportune time to invest in debt. He anticipates potential returns of 7% to 8% in the US market over the next 12 months, driven by carry and price appreciation. US 10-year yields were trading around 4.99% on Tuesday, having recently surpassed 5%. Michele highlighted that a 3% yield on the US Treasury curve, last observed in 2002, represents a significant buying opportunity. He also noted Japan, Australia, investment-grade credit, and emerging market sovereign debt as strong investment picks.