The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bond Outlook January 13 2010

Growing disconnect between financial markets and the real Western economy makes us urge great caution, especially regarding the issuance of so many “junk bonds”. Diversifying currencies is to be recommended.

Bond Outlook [by bridport & cie, January 13th 2010]

The doubts we expressed last week, that the positive atmosphere of financial markets contradicted economic reality, have continued to grow. Unemployment in the USA and housing foreclosures are still rising. What GDP growth that is being achieved is dependent on government stimuli, and now, overhanging everything, is the end of quantitative easing foreseen for March. Deflation remains and may worsen even though government borrowing is likely to push up US long-term rates; they have already risen from 4.2% at 10 years to 4.6% over the last six weeks alone. Euroland and the UK are scarcely in any better shape. The problems of Greece are also straining solidarity in the Euro zone.

Asia, however, is thriving.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree