Pursuits

Bonds Send Same Ominous Signs No Matter Where in World You Look

  • Average yields on euro debt due within 5 years turn negative
  • Global growth and inflation may remain tepid for years

A securities brokerage in Mumbai, India.

Photographer: Dhiraj Singh/Bloomberg
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Ask any bond trader in Tokyo, London or New York what their view on the global economy is, and you’re likely to get a similar, decidedly downbeat answer.

That’s not just because fixed-income types are a dour bunch at the best of times. A quick scan across government debt markets suggests that investors are pricing in the likelihood that growth and inflation around the world will remain tepid for years to come.