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Bond market players sanguine amid warning signs

Market believes that "Goldilocks" era of minimal bond price movements and relatively bullish equity market conditions will continue as inflation turns upwards

Published Sun, Jan 7, 2018 · 09:50 PM

London

GLOBAL market participants are sanguine about bond markets despite economic and financial warning signs.

Historically, rising inflation, higher economic growth and government borrowing, and an increase in US Federal Reserve Bank interest rate rises would be negative for the bond market. In the past six months, bond yields have begun to rise, but the increase has been small, so government and other bond prices have fallen by negligible amounts.

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