Move over Treasury bonds and German bunds: John Stopford, London-based co-head of fixed-income at Investec Asset Management, which manages $100 billion in global assets, says he is favoring government bonds in Norway -- endowed with oil reserves, fiscal surplus and a robust economy -- vs the two major safe-haven markets. Stopford frets about the low yields in both Treasurys and bunds. While bunds have been a big winner from flight to safety, Stopford is worried that bund yields will rise as he expects Germany will shoulder a bigger fiscal burden to bolster the euro zone. The 10-year Norway government bond recently yielded 1.907%, higher than 1.714% on Treasury 10-yr note and 1.384% on 10-yr bund.
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