Central Bankers Could Trump Fixed Income Fundamentals to Keep Rates Low, According to Standish

   Central Bankers Could Trump Fixed Income Fundamentals to Keep Rates Low,
                            According to Standish

BNY Mellon Fixed Income Manager Cites Sharp Declines in European Government
Bond Yields

PR Newswire

NEW YORK and LONDON, Nov. 19, 2012

NEW YORK and LONDON, Nov. 19, 2012 /PRNewswire/ -- The actions of global
central bankers and legislators may trump economic fundamentals, keeping
interest rates low and affecting fixed income returns in 2013, according to
the November Bond Market Observations from Standish Mellon Asset Management
Company LLC, the Boston-based fixed income specialist for BNY Mellon.

The impact of policy intervention is evident in Europe, where peripheral
economies such as Spain have experienced sharp declines in government bond
yields as a consequence of policy intervention by the European Central Bank
(ECB), the report said.

"Most major central banks in the developed markets are engaged in some form of
unconventional monetary policy to counteract the fiscal drag," said Thomas
Higgins, global macro strategist for Standish and author of the report. "This
has resulted in low yielding sovereigns in the developed world.

Investors searching for yield are likely to be attracted to U.S. corporate
high yield and emerging markets bonds, which typically offer investors
significantly higher yields, Higgins said. Overall, though, Higgins said
investors should expect more from bond interest payments instead of additional
capital appreciation.

Higgins added that Standish expects some volatility in the coming months,
which could provide buying opportunities for bond investors.

The U.S. Federal Reserve launched its third round of quantitative easing in
September and has arguably been the most aggressive with its use of
unconventional measures, which have had a material effect on fixed-income
markets, the report said. Without this easing, Standish said studies suggest
rates on the 10-year Treasury could be a full percentage point higher.

Notes to Editors:

Standish Mellon Asset Management Company LLC, with approximately $104 billion
of assets under management, provides investment management services across a
broad spectrum of fixed income asset classes. These include corporate credit
(investment-grade and high-yield), emerging markets debt (dollar-denominated
and local currency), core / core plus and opportunistic (U.S. and global)
strategies. Standish also offers full service capabilities in insurance and
liability driven investing. The firm also includes assets managed by Standish
personnel acting as dual officers of The Dreyfus Corporation and The Bank of
New York Mellon.

BNY Mellon Investment Management is one of the world's leading investment
management organizations and one of the top U.S. wealth managers, with $1.4
trillion in assets under management. It encompasses BNY Mellon's affiliated
investment management firms, wealth management services and global
distribution companies. More information can be found at www.bnymellon.com.

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