Bond yields down as equities weaken

By Rod Davidson, head of fixed interest at Aberdeen Unit Trust Managers With equity markets cont...

By Rod Davidson, head of fixed interest at Aberdeen Unit Trust Managers With equity markets continuing to weaken due to concerns over corporate accounting and earnings revisions, government bond markets have gone from strength to strength, pressing down yields. For example, two-year US Treasury bond yields are now standing at historical low levels ' around 2%. Perceptions have changed dramatically about the timing and magnitude of any global interest rate tightening cycle. Expectations for future short-term interest rates have fallen in almost every developed market as a result of ...