Bonds Erase ’13 Losses as Three-Decade Rally Defies Bears
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Bonds of issuers worldwide from Morgan Stanley to the Spanish government have erased losses for 2013 as reports of the death of the three-decade bull market in the securities prove premature with the Federal Reserve maintaining its stimulus.
Returns this month of 0.88 percent on the Bank of America Merrill Lynch Global Broad Market Index bring gains since year-end to 0.4 percent. Seven weeks ago, before central bank policy makers surprised investors by delaying cuts in monthly purchases of $85 billion of Treasuries and mortgage bonds, the measure was down 2.1 percent.