Companies reluctant to start investing

Fund manager's comment

The direction of government bond yields is affected, among other things, by interest rates. However,...

The direction of government bond yields is affected, among other things, by interest rates. However, US and UK monetary policy is now moving in different directions. The US Federal Reserve has kept to its stance of measured rises, while the UK, which began raising rates earlier, has initiated a cut. The Fed had raised rates 25 basis points (bp) at 10 consecutive Federal Open Market Committee meetings and in recent statements accompanying its policy adjustments the Fed has remained upbeat about prospects for the US economy. US treasury yields, however, pushed lower in the second quarter, ...