Multi Asset chart of the week | Insight Investment

Higher velocity moves in government bond yields hurt equities in April

Insight’s Christopher Broadley, Portfolio Manager, multi-asset strategy team, said: “This week’s chart highlights the interaction between government bond yields and equities in 2024, particularly how the latest leg higher in yields has stalled the equity rally. For most of the first quarter, yields trended higher as the combination of strong growth data and upside inflation led investors to push back the timing of expected rate cuts. Against this backdrop, equities enjoyed their third strongest start to the year since 2000. However, as upside inflation surprises have continued, the rate of change of yields has increased and in turn created a tough environment for risk assets†.”