Economics
Global Bond Market Surges Most Since 2008 as Growth Outlook Dims
- Government debt returns 2.3% in June amid Brexit concern
- ‘Profound lack of growth’ boosts fixed income, BlackRock says
A Deep Dive Into Bonds in a Low-Yield Environment
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The U.K.’s surprise vote to leave the European Union isn’t seen having fallout as severe as the 2008 financial crisis, but you wouldn’t know it from the rush to safety in the global market for sovereign debt.
Government bonds worldwide have gained 2.3 percent in June, the most since December 2008, according to Bank of America Corp. index data. The effective index yield is down to 0.5 percent, from 0.74 percent at the end of May, as investors bet that a Brexit vote would curb economic expansion and make it tougher for central banks in the U.S., Europe and Japan to stoke inflation.