Demand for paper steady as equities are squeezed

Interest rates continue to stay at record lows, with the Bank of England and the Fed holding rates d...

Interest rates continue to stay at record lows, with the Bank of England and the Fed holding rates despite expectations that a rise is imminent. Chris Tracey, global strategist for JP Morgan Fleming, says none of the central banks has raised interest rates and, significantly, US Treasury yields ended May at the bottom of the trading range they have been in for several months. He says: 'With equities falling, the normally close correlation between the performance of bonds and equities has completely broken down. Clearly, neither central bankers nor holders of bonds are worried about...