Our View - The Questions

"Many things contribute to higher yields"

Reading time: 3 Min
Contrasting views: The equity markets have marked record highs and are anticipating an economic recovery. In the bond markets, on the other hand, yields have fallen. VP Bank Chief Investment Officer Felix Brill explains why he still expects yield to go higher.

A whole mix speaks for rising yields, says Felix Brill. "We see the economic recovery continuing, we see high inflation rates and we see the Fed preparing the markets for a normalisation in monetary policy. This is going to contribute to higher yields", he says in the interview format "Our View - The Questions".

It is not surprising that the bond market in particular is focusing on the risks also the Fed has stressed. "Bond investors focus more on risks than equity investors" says VP Bank's Chief Investment Officer.

The stronger franc and also the stronger dollar fit into the picture of heightened risk perception. "We think this is only a temporary phenomenon. We expect both the dollar and the Swiss franc to lose value going forward."

Our View in July

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