Only an Equities Crash Can Rescue the Bond Market, Barclays Says
- Fed will remain net seller of Treasuries, term premium to rise
- Japanese investors may favor domestic bonds as yields increase
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Global bonds are doomed to keep falling unless a sustained slump in equities revives the appeal of fixed-income assets, according to Barclays Plc.
“There is no magic level of yields that, when reached, will automatically draw in enough buyers to spark a sustained bond rally,” analysts led by Ajay Rajadhyaksha wrote in a note. “In the short term, we can think of one scenario where bonds rally materially. If risk assets fall sharply in the coming weeks.”