US: behind the curve
Article Abstract:
US bond yields are falling at the start of 1995, while economic growth is accelerating, according to Kleinwort Benson. There is a debate as to how high interest rates will be, and what levels of inflation prevail, once economic growth starts to slow down. The rate at which monetary tightening proceeds is likely to be slowed down in order to protect the financial system. Rising prices of raw materials is affecting the price of intermediate products, but concern over the financial system will prevent the problem from being tackled. Kleinwort recommends avoiding US bonds.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Global bonds: growth queries
Article Abstract:
Lehman Brothers does not agree that slower growth for the global economy would be beneficial for bond markets. Inflation will be reduced if growth is slower, but a reduction in tax revenue and rise in demand for social security will hit public finances. Public sector debt increases may be more important in the 1990s than in previous decades. Debt levels have risen, so default risks are greater and this will mean higher bond yields. Countries with low debt levels are likely to see bond markets benefit more from lower growth.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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A port in a storm
Article Abstract:
The UK bond market had seen rising demand even before the 11 Sep, 2001, events in the US. Bonds are seen as a safe investment in uncertain times. The UK bond market has also benefited from the volatility in equities and higher demand for government bonds.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2001
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