Bond bears are rampant at the moment; for the US it is the first time in over five years there has been a step-change in policies to justify higher bond prices.
US President Donald Trump's election and expectations of fiscal spend have pushed 10-year US treasuries 1% higher over the last six months. Underlying this too has been a material pickup in GDP growth in the second half as well as consumer confidence. Higher headline inflation, with US CPI pushing towards 2%, also justifies higher yields. Moreover, the Federal Reserve has signalled that 2017 will see the end of its emergency rates policy and a normalisation of short rates with at least two further rate hikes. What happens in the US often hits the UK nine months later. With higher...
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