Bond market momentum, valuation and risks

Christian Hawkesby | Harbour Asset Management | 12 August 2013

TWO STRONG OPPOSING FORCES

Global bond yields rose sharply over May and June 2013, following signals from the US Federal Reserve that it was considering tapering the size of its Quantitative Easing (QE) bond purchases, as evidence grew that the US economic recovery was gaining traction. The US 10-year yield rose from a low of 1.60% in early May 2013 to as high as 2.75% in early July, leaving yields at the...