TS Lombard suggests that the bearish sentiment which has made global long-term sovereign bonds one of the worst-performing fixed income assets this year may be about to subside, making these securities worth purchasing.

Davide Oneglia, an economist at the London-based research firm, indicates that the situation is "repairing" as governments from Japan to the UK have managed to better align supply and demand for long-term bonds, supporting these securities while also planning buybacks. He notes that increased debt and rising budget deficits have pressured these assets this year, but these factors should help alleviate related concerns.