SocGen's Edwards rethinks 'Ice Age' government bond overweight

Yields fall into negative territory

Société Générale strategist Albert Edwards said the company is rethinking its two-decade long overweight in government bonds against global equities, as yields begin to fall into negative territory.

The comments, released today, come after 10-year Japanese bond yields fell further into negative territory at -0.06% yesterday, alongside Switzerland 10-year yields which currently stand at -0.5%. The negative yields on Japanese government bonds follow the Bank of Japan's decision to cut interest rates to -0.1% last month, in a bid to keep its economic plans intact in the face of global headwinds. "I am now in the process of completely rethinking my Ice Age investment thesis," he said. "The only major asset to have seen continuous positive year-on-year returns since before the global ...