Eric Lonergan, discretionary macro head at Calibrate Partners, says the global selloff in bonds could offer investors the opportunity to "make a lot of money."

London

A fund manager has stated that UK 30-year government bonds are now yielding at levels that could provide returns similar to equities, particularly if yields fall and bond prices rally. The manager points out that with yields around 5.6% to 5.8%, and assuming the Bank of England achieves its inflation target, these bonds present a significant opportunity for investors, especially compared to previous years when yields were much lower.

The conversation also criticizes the Bank of England's approach to quantitative easing (QE) and quantitative tightening (QT), questioning the logic of buying bonds at very low yields and selling them at much higher yields. The manager suggests that the current environment offers better prospects for pension funding and long-term investors, given the improved income potential from these bonds.

UK 30-year bond offers 'equity-style return,' fund manager says

Are we nearly done? We were joking as we sat down, but when the traditional news starts covering the bond market, you know that probably we've reached an end to the near-term pain. I think so. I think we're in the realms of a local high in yields. I'm not going to pinpoint that and say it's today, but it's music to my ears to hear somebody saying, I can't find a single reason for these things to rally. That's exactly when. If one goes back to the depths of the equity markets, say, in April, nobody could find a reason. If you remember that weekend, I think it was April 9, nobody could find a reason to own the equity market and we're 15% higher. I would have a reasonably high degree of confidence if you could fast forward three or six months, you'll probably make a lot of money in these bond markets. A lot of money? Yeah. Bear in mind, a 30-year yield, if you get a rally of 100 basis points, say you're talking about 20% capital return. So could you rally 25 base points? You could rally 25 base points in very, very little. Who would be the buyer there? Who's buying? Who's the marginal buyer in Europe right now? But it's price itself. I mean, we know the way these things work. I mean, it's important to have, you've got to have a lot of clarity and you've got to step back and try and think carefully about this. I mean, who was buying, the question we should be asking ourselves is who was buying these bonds when they were yielding zero? Yeah. Right. I mean, I didn't have any. You know, like the point is the yield to maturity is the yield to maturity. So take the 30-year gilt just because it's the highest level of yield. Actually, the UK isn't that interesting. We can talk about why. But if you take a 30-year gilt yielding where we have 5.6, 5.7, 5.8, that, you know, if you think the Bank of England is going to deliver you 2% inflation over the medium term, that is an equity style return now for owning a gilt. Now, we were told for most of the last 10 years that these were safety assets. What's really going on here is people were buying these hand over fist when yields were zero, when yields were one. And they are sitting on huge capital losses. This is they've experienced equities crash style returns. So there's a huge risk premium because we're pricing the past. If you go forward, you know, if you're in your 30s, you can now you can fund your pension fund. Right. I mean, how difficult was it to fund a pension when the 30-year gilt was 1%? How much capital? Yeah. If the smart thing to do here is look at the income and the reaction function is exactly what you want, which is people are going to stop issuing. Finally, people are going to stop doing QE. I mean, what's QT rather? Like what's why on earth is the Bank of England doing QT? I mean, that's the question. That's with our money as the public. Right. I mean, that's nuts. They were buying them at zero during Covid. They're selling them at 5.8. Like I don't know which book of asset allocation they're using, but apparently it's OK if you call it QE and QT. The emperor has no clothes. I mean, there's the child at the back of the room is going, sorry, what are you doing? Yeah. Right. That's nuts.

"With infinite sorrow, the Armani Group announces the passing of its creator, founder, and tireless driving force: Giorgio Armani," the fashion house said in a statement on Thursday.

Milan

'King' of Italian fashion Giorgio Armani dies at 91

A federal judge on Wednesday ruled that U.S. President Donald Trump's administration unlawfully terminated about $2.2 billion in grants awarded to Harvard University and can no longer cut off research funding to the prestigious Ivy League school.

Cambridge

Trump admin unlawfully cut Harvard's funding, U.S. judge rules

Russian President Vladimir Putin has delivered a statement after meeting leaders on the sidelines of the military event in Beijing. He spoke about Russian security interests, and the Ukraine war.

Moscow

Ukraine Invasion

Putin wraps China visit with gas deal, calls for Ukraine peace talks

Hope is fading of finding survivors in the rubble of homes devastated by a powerful earthquake in eastern Afghanistan over the weekend that killed more than 1,400 people, as emergency services struggle to reach remote villages.

Kunar

Hope fades for finding survivors after Afghan quake kills over 1400

Portuguese authorities say at least 15 people died after a streetcar derailed and crashed in the capital of Lisbon. CBS News senior foreign correspondent Imtiaz Tyab has the latest.

Lisbon

Iconic streetcar in Portugal's Lisbon derails, 15 killed

Democratic Rep. Ro Khanna, along with Republican Reps. Thomas Massie and Marjorie Taylor Greene, held a news conference on Wednesday with survivors of Jeffrey Epstein and Ghislaine Maxwell's sexual abuse. CBS News' Caitlin Huey-Burns has more details.

Washington

Epstein survivors add voices to calls for transparency

Israel's central intelligence agency, Shin Bet, said that it thwarted an assassination plot by Hamas against the country's right-wing minister of national security, Itamar Ben-Gvir, Reuters reports.

Tel Aviv-Yafo

Israel reportedly thwarted plot to assassinate right-wing minister

In California on Tuesday, a jury took less than an hour to clear Cardi B of assault allegations made in a $24 million civil lawsuit. A security guard claimed the rap star attacked her in 2018.

Los Angeles

Cardi B wins civil case against security guard

Secretary of State Marco Rubio said on Tuesday that the U.S. military struck a boat apparently carrying drugs from Venezuela. CBS News' Charlie D'Agata has the latest details.

Trump says U.S. struck drug-carrying boat from Venezuela

China's Xi Jinping welcomed Russian President Vladimir Putin and North Korea's Kim Jong Un, along with other world leaders, for a huge military parade showing off new technology.

Beijing

Vladimir Putin, Kim Jong Un attend China's massive military parade

A Republican-led U.S. House of Representatives committee said it released more than 33,000 pages of files on the disgraced financier and convicted sex offender Jeffrey Epstein, as party leadership looked to end a push by a bipartisan pair of lawmakers to force a vote on the matter.

U.S. House committee releases thousands of Epstein files

French Prime Minister Francois Bayrou last week called for parliament to hold an earlier-than-expected vote of confidence in him. Next week’s ballot could lead to the collapse of his centrist government and prompt a period of further instability in the European Union’s second biggest economy.

Paris

France’s PM faces crucial confidence vote amid political turmoil

Tens of thousands of reservists began to report for duty on Tuesday for a new Israeli offensive to seize Gaza City, which Prime Minister Benjamin Netanyahu wants to accelerate despite warnings from senior ranks.

Middle East Conflict

Israel calls up reservists as military chief clashes with ministers

The House Oversight Committee on Tuesday released over 33,000 pages of documents related to sex offender Jeffrey Epstein.

33,000 pages of Jeffrey Epstein documents released by House panel

Belgium joins the ranks of Australia, France, Canada and the UK, all who have pledged to recognize a Palestinian state at the UNGA next week in a bid to ramp up pressure on the Israeli government to end the war in Gaza.

Brussels

Belgium to recognize Palestine at the UN General Assembly

A powerful 6.0 magnitude earthquake in eastern Afghanistan killed at least 1,400 people, according to the Afghan Red Crescent Society. Thousands more were  injured.

At least 1,400 killed in powerful Afghanistan earthquake

The death toll from Afghanistan's worst earthquake in years jumped to over 1,100 with thousands more injured, as difficult terrain hindered rescue efforts in isolated villages of the country's mountainous eastern region.

Taliban appeals for aid after quake kills over 1100 in Afghanistan

The leaders of Russia, China and India showcased a renewed commitment to co-operation on the second day of the Shanghai Cooperation Organization summit. Analysts says the friendliness is designed to project an unified alternative to the West.

Tianjin

Russia, China, India tout renewed co-operation

A plane carrying European Commission President Ursula von der Leyen was disrupted by jamming that authorities suspect was the result of Russian interference in Bulgaria.

Plovdiv

Von der Leyen's plane affected by alleged Russian GPS jamming

The world's leading genocide scholars' association has passed a resolution saying that the legal criteria have been met to establish Israel is committing genocide in Gaza, its president said on Monday (September 1).

Jerusalem

Israel committing genocide in Gaza, scholars' association says

Chinese President Xi Jinping and Russian President Vladimir Putin outlined a new global security and economic order at a regional summit on Monday (September 1), as India and Russia continued to express strong ties between their nations.

China's Xi, Russia's Putin share vision for new global order

A devastating 6.0 magnitude earthquake struck eastern Afghanistan late Sunday, killing more than 800 people and injuring hundreds more, officials said. CBS News senior foreign correspondent Holly Williams reports.

Kabul

Powerful earthquake in Afghanistan kills hundreds, destroys villages

Iran-backed Houthis raided offices of the United Nations’ food, health and children's agencies in Yemen’s capital, detaining several UN employees, officials said. The rebels tightened security across Sanaa following the Israeli killing of their prime minister and several Cabinet members.

Sana'a

Houthis raid UN offices in Yemen, detain 11 employees

A large buildup of U.S. naval forces in and around the Southern Caribbean has officials in Caracas and experts in the United States asking: is the move aimed at combating drug cartels, as the Trump administration has suggested, or is it for something else entirely?

Caracas

U.S. builds up forces in Caribbean as officials, experts concerned

Officials from the Trump administration spent the weekend pushing back against a U.S. appeals court ruling that most tariffs against Canada were illegal. Economic adviser Peter Navarro called the decision politically motivated.

Global Tariffs

Trump officials push back after court rules tariffs illegal

Israel's security cabinet is considering a plan to seize Gaza City with attacks ramping up over the weekend. The Israeli military has now ended a temporary pause of military action around aid delivery locations ahead of an expected 'full-scale assault'.

Israel intensifying attacks ahead of planned seizure of Gaza City

Illinois Gov. JB Pritzker says he's making every effort to stop President Trump from using the military to "invade states." But the White House claims the National Guard is needed to stop violent crime in Chicago.

Chicago

Trump threatens to send military to Chicago over crime

A young boy who had wandered away from his parents ended up on a closed monorail at Hersheypark in Pennsylvania this weekend. A bystander helped rescue the boy as a gathering crowd cheered. It's not clear how he made his way onto the monorail.

Hershey

Boy rescued from monorail track at Pennsylvania amusement park

A flotilla of boats carrying humanitarian aid for Palestinians in Gaza, has set sail from Barcelona. On board are organisers from 44 countries, who say they're trying to break Israel's siege on the Strip.

Barcelona

Greta Thunberg onboard second aid flotilla heading for Gaza Strip

Indian Prime Minister Narendra Modi said New Delhi was committed to improving ties with China in a key meeting with President Xi Jinping, as the two leaders discussed the need to expand trade and investment ties against the backdrop of U.S. tariffs.

Breakdown