The biggest monthly loss in fixed-income securities since 2004 has still left global yields short of the tipping point that would signal a bear market in bonds but many economists have declared the end of the bull bond run.
Bonds lost 1.5 percent in May after Federal Reserve policy makers sent mixed signals about whether they would slow the pace of their $85 billion a month in debt purchases this year. Tame inflation and lower global growth estimates from the International Monetary Fund indicate the world’s central banks won’t pull back anytime soon, averting a further rout.
To view LSA’s full May Bond report visit the LSA website and log in. The presentation can be found under “Resources/Articles” – to listen to the video commentary with Brad Kasper go to “Resources/LSA Portfolio Updates”. If you are not a LSA member but would like to hear our take on bonds in May e-mail us at firstname.lastname@example.org.
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