NZ Bond Yields High, Investors 'Pretty Well Compensated'

New Zealand's 10-year government bond yields are currently higher than neutral and have rarely stayed this high for an extended period, making investors 'pretty well compensated' for holding these bonds.

This is according to Amova Asset Management's fixed interest manager Matthew Johnson. He notes that longer-term inflation expectations are well anchored in New Zealand, which contributes to the current state of bond yields.