The first eight months of 2017 have challenged expectations for robust global reflation and reinforced the importance of taking a measured and practical approach to fixed income investing.
While global growth has been above-trend, the breakout many investors anticipated has not materialised. Recent US inflation data has disappointed, which is complicating central bank decisions around raising interest rates. Global bonds suffer biggest sell-off since 'taper tantrum' on Trump victory Surprisingly, financial conditions are actually looser today than at the start of the year, with the 10-year Treasury yield having moved lower since then. Having said that, the global yield picture still favours the US, as yields of German 10-year bunds and Japanese government bonds ...
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