Further tightening could propel bond yields higher

Global bond yields are expected to remain low with what modest upward movements there are predicted ...

Global bond yields are expected to remain low with what modest upward movements there are predicted to be at the long end of the curve. That said, further tightening of monetary policy could push bond yields higher even if curves remain flat or start to invert, according to Mike Turner, head of global strategy and asset allocation at Aberdeen Asset Management. "Credit markets in our view are reasonably expensive but unless equity market volatility rises substantially, we do not expect to see spreads widen materially. Default rates are not expected to rise sufficiently to scare investors,...