Deutsche Bank CEO Warns of Structural Shift in Bond Market, High Yields to Remain

Deutsche Bank CEO Christian Sewing expects bond yields to remain high due to mounting debt, stalled reforms, and growing political uncertainty. The bank's CEO calls it a "structural shift" and a "reset" rather than a temporary flare-up. The UK's 30-year gilts have reached levels not seen since 1998, and US Treasury yields are approaching 5%. This increased risk sensitivity means investors are becoming more cautious and less willing to tolerate fiscal ambiguity, making long-term bondholders more expensive.