Global growth pick-up key to higher bond yields

Global manufacturing continues to contract as trade falters. The Trump administration’s attempts to overhaul trade agreements are cooling sentiment and raising global uncertainty.

Meanwhile, inflation is loitering well below target and driving most central banks to be highly accommodative. The combination of tame inflation and aggressive easing have driven yields lower and powered a rally in global bond prices this year. Close to a quarter of global bonds are trading at negative yields. A serious setback in the US-China trade talks could materially push rates lower from here. Conversely, any tangible progress would bolster sentiment. However, for investors to see a sustained increase in yields, global growth needs to pick up.  Losing my religion: What is ...