The Bedrock of Ultra-Low Yields Is at Risk
- ‘The green shoots of fiscal spending are happening’: Loomis
- Fragile growth, monetary action still curbing rise in yields
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The new decade could be the dawn of a tougher era for bond investors, as conditions that sustained the historic bull run in government debt fall away.
Unprecedented central bank action has dominated economic stimulus since the global crisis and suppressed yields around the world. The skew may now be shifting more toward fiscal expansion that could pressure rates higher. Austerity is on the wane in Europe, spending packages are landing in Asia, and U.S. borrowing is on track for even bigger records in the next couple of years.