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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bond Outlook August 24th

A summer of quiet changes in Japan, Germany and China, together with signs of an end to the US housing bubble, allow a degree of optimism about world economic rebalancing.

Bond Outlook [by bridport & cie, August 24th 2005]

Rather quietly, over the summer, a number of significant politico-economic changes have appeared, and which, taken together, are quite encouraging in the context of world economic rebalancing:


  • Japan may have turned a corner with a pick up in domestic demand, the end of deflation in sight and the forthcoming election likely to allow Koizumi to proceed with reforms
  • The German economy has returned to growth (and with it the Swiss)
  • Germany under Merkel is likely to continue to turn eastward, depriving France of its main partner in the EU
  • The US housing bubble is looking close to its end
  • Following the Chinese change in its peg policy, Asian countries are diversifying their purchases of foreign Government bonds.


The reason that this is an encouraging mix is that a reduction in US consumer spending is inevitable on the simple grounds that no one, not even a superpower, can live indefinitely beyond their means. The immediate cause of a decrease in spending is likely to be the end of remortgaging as a source of funds.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

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