Yields to rise as global growth lifts

Fund manager's comment

In recent weeks, global bond yields have risen in response to improving US economic developments, mo...

In recent weeks, global bond yields have risen in response to improving US economic developments, more hawkish rhetoric from central bank officials outside of the UK and news that China will revalue the renminbi. This trend should continue as global growth firms and bond yields rise in the months ahead. US economic data suggests growth will remain robust in the second half of 2005. The manufacturing sector is recovering, while consumer sentiment and activity remains firm, as employment gains continue to aid consumption. As a result, we believe the US economy should register above-trend GDP...