Bond yields remain low despite inflation pressure

There is little sign of rising bond yields in any major markets despite divergent inflationary press...

There is little sign of rising bond yields in any major markets despite divergent inflationary pressures, according to Sarah Arkle, chief investment officer at Threadneedle Investments. Arkle believes bond yields will stay low in the US, Europe, UK and Japan, a position that has led her to underweight fixed interest. Such is the demand in the US that, a small movement in interest rates will not drive yields up massively, she notes. "Although bond valuations look overstretched and yields are expected to rise from current levels, bonds are expected to remain expensive relative to their f...