According to Robeco's quarterly bond report released on Nov 10, the U.S. 10-year Treasury yield may spike to 5.5% as market pricing converges with long-term nominal GDP growth rates. The asset manager noted that rate-weakness momentum could reverse only if energy prices plunge sharply or economic growth slows.
Robeco upgraded its outlook on European duration to positive, citing the region's higher recession risk, while downgrading positions in Canada, Japan, and emerging Asian markets. The firm expects Japanese government bond yields to rise further amid persistent inflation and monetary policy normalization.