Global growth fears spell falling bond yields

Fund manager's comment

Bond yields have fallen back as fears over global growth have risen and inflation has subsided after...

Bond yields have fallen back as fears over global growth have risen and inflation has subsided after moving higher earlier in the year. Central bankers have been careful to keep their options open as ambiguous data clouds the outlook for interest rates. Our view of the world economy holds that growth and inflation prospects are likely to remain benign. Government bond markets have performed well in the second quarter, reversing a weak first quarter. For example, yields on US 10-year Treasuries fell from 4.5% at the beginning of April to 4% recently. The Fed's Alan Greenspan noted it is v...