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15 May 2015
Sell-off in US bonds a temporary phenomenon - Nomura
FXStreet (Bali) - In view of Nomura's Asset Allocation Strategy Team, recent sell-off in US bonds appears to be an unsustainable path over the medium term and therefore a temporary phenomenon.
Key Quotes
"In the broader scheme of things the latest price action primarily in bonds is a reversal of the trends and trades that dominated markets until a few trading sessions ago."
"Whether this is becoming a new trend in itself is potentially the most pressing issue for investors at the current juncture. We view the recent sell-off in bonds as an unsustainable path over the medium term and therefore a temporary phenomenon."
"Nevertheless, in the context of a weakening global growth environment, it has the potential to cause serious damage to the real economy if extended from here."
Key Quotes
"In the broader scheme of things the latest price action primarily in bonds is a reversal of the trends and trades that dominated markets until a few trading sessions ago."
"Whether this is becoming a new trend in itself is potentially the most pressing issue for investors at the current juncture. We view the recent sell-off in bonds as an unsustainable path over the medium term and therefore a temporary phenomenon."
"Nevertheless, in the context of a weakening global growth environment, it has the potential to cause serious damage to the real economy if extended from here."