Firm grip of deflation may cause bond yields to hit historical low

The Debate

This week's debate focuses on the outlook for fixed interest

In much of Europe, the problem is that the potential level of growth is quite low, so you might see some sort of excess demand pressures beginning to build. With consensus putting bonds well overvalued at present, this week's Conjecture debate looks at the prospects for the various classes of fixed interest over the course of the year. Present at the debate were Vincent Chailley, head of international fixed income at Credit Agricole Asset Management, Stewart Cowley, manager of Newton's International Bond fund and Colin Harte, who runs Barings Global Bond portfolios. Is inflation under c...