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If bonds aren’t cheap, equities can’t be either

Interest rates may be at decade highs, but some of the world’s biggest fixed income funds say it’s still risky business to chase yield.

Jonathan Shapiro
Jonathan ShapiroSenior reporter

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In June of last year, I did something I never thought I would do: I bought a government bond.

The rationale was fairly straightforward: the banks were still paying modest deposit rates of up to 2 per cent, while the yield on a three-year bond was almost double, at 3.75 per cent.

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    Original URL: https://www.afr.com/markets/debt-markets/if-bonds-aren-t-cheap-equities-can-t-be-either-20230222-p5cmne