US markets continued to edge higher on Wednesday, despite the Federal Reserve's latest minutes suggesting an interest rate hike may come sooner than expected.
Markets across Asia and the US climbed on Thursday, following a bout of soft economic data which saw retail sales in the US stall.
US high yield bond funds and ETFs have seen record outflows this week, according to Lipper data, amid a spike in yields for the asset class in both the US and UK.
Investors predicting historically-low interest rates will rise after the end of quantitative easing are misguided, M&G's fixed income desk have said.
The US Federal Reserve has maintained the gradual tapering of its QE programme after a meeting which suggests some members are pushing harder for a more hawkish monetary policy.
US GDP growth has risen more than expected in Q2, according to initial estimates, with the contraction in the first quarter less bad than had been feared.
The US Federal Reserve has said it will end its purchases of government bonds in October, bringing to a close the quantitative easing experiment.