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The bond market's recent bullish run will peter out over the next year, with yields at the long end in most countries set to back up on a 12 month view, according to the consensus view of the 46 analysts polled worldwide in ETM's September one year interest rate survey.
US TREASURY YIELDS FORCED UP
In the US, for instance, the mean view does not expect the yield on the benchmark 30-year Treasury bond to remain sustainably below the 6% level which it has recently fallen to. Instead, it projects that falling prices will force yields back up to 6.3 by September 1994.
Some analysts are however more singuine in their outlook for the US bond market. The sluggish pace of US economic recovery has so far failed to reignite inflationary pressures. Those...