Bond yields in defiance of market expectations

Bond yields are defying economic orthodoxy with expected sell-offs in the asset class failing to mat...

Bond yields are defying economic orthodoxy with expected sell-offs in the asset class failing to materialise, even as economies continue to grow. Yields were low early in 2004 but net sales of fixed interest assets around March have given investors a profitable time. In local currency terms, the JP Morgan Global Government Bond index has returned 2.7% in the third quarter of the year. Singer and Friedlander director Andrew Impey says: "The third quarter has witnessed an unusual state of affairs whereby bond prices have been rising despite the fact that the interest rate cycle in the US, ...