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Andreas Steno Larsen, founder & CEO, notes that after years of yields remaining below levels suggested by economic fundamentals, they are now more closely aligned.
This assessment comes as yields have reached points considered appropriate by many economic standards.
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Earlier this year, Andreas Steno Larsen highlighted that U.S. bonds posted their weakest 10-year performance since 1803. He has also noted bond market concern as the Federal Reserve signaled no urgency for an October rate hike, with payroll data backing this view in a recent analysis. These observations come as yield levels shift to more closely track economic fundamentals.