Bond Bears Miss Out on $2 Trillion Windfall in Record Debt Rally

  • BofA Global Broad Market Index has risen 3.1% this quarter
  • Sovereign bonds lead gains, followed by corporate debt
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So much for the end of the bull market in bonds.

Recession worries and central-bank stimulus in Europe and Japan have given fresh life to a three-decade-long rally in global debt. Bonds worldwide are off to the best annual start since at least 1996. They’ve earned 3.1 percent this quarter and added more than $2 trillion of market value, according to a Bank of America Merrill Lynch index that tracks securities ranging from corporate and government obligations to mortgage-backed debt.