Graham Walker - Rising Bond Yields Cause For Concern...

Online, April 14, 2010 (Newswire.com) - Business News: LONDON --"Graham Walker", the European-based investment broker, has expressed its concern at the steadily rising bond yields being demanded by investors keen to offset the increased risk of holding long-dated sovereign debt.

Although the potential for higher yields has existed since governments began printing money to help stimulate their economies, recent weeks and months have seen investors spooked by the plights of Dubai and Greece. The sentiment appears to be that governments will have difficulty servicing their debts in the years ahead.

"Graham Walker" analysts are also mindful of the knock on effect of higher bond yields on monetary policy in general and on mortgage rates in particular and attribute the rises in the case of the United States to the withdrawal of the Federal Reserve from its role as a large buyer of long-dates treasuries during its quantitative easing program which comes to an end this month.

Presious metals including gold and silver remain high on the "Graham Walker" client buy list as the firm maintains its view that they offer the best means by which to protect the purchasing power of wealth in the face of increasing monetary expansion.

The firm advises clients to avoid bond funds arguing that the likelihood is that money invested in such funds is unlikely to preserve the real value of money when governments are systematically devaluing their currencies both as a means to repay debt and boost exports.