Bond markets' 'addiction' to low rates will 'not be left unsatisfied' for a year or more

Following the unprecedented falls across all financial markets in recent weeks, the safest government bond markets have had to become cash vaults for fund allocators trying to raise the liquidity needed to plug the fast-growing holes left by the equity, corporate bond and commodity sell-offs.

A decade of intense monetary easing has redirected investors in their frantic search for yield towards less liquid assets or lower rated bonds and this is precisely what has precipitated the fast deterioration in financial conditions.  A by-product of the Covid-19 pandemic is that central banks are again called to the rescue to reassert themselves as both lenders and, this time, buyers of last resort. M&G's Alex Araujo: Opportunities for long-life global infrastructure assets Bond markets' addiction to low rates and quantitative easing programmes will not be left unsatisfied for th...