Quotes from Barclays Capital:
-On the one hand, we still expect the Fed to start hiking policy rates in mid-2015, which implies that Treasury yields may have limited downside potential over the coming months. On the other hand, looming quantitative easing from the ECB, coupled with further stimulus measures and pension fund reforms out of Japan, should help anchor global yields in general.
-With the exception of the US and a handful of emerging markets, growth prospects remain subdued and inflation well contained, which, together with the stronger US environment, best explains why commodity prices have been declining. Hence, the global environment still does not seem conducive to a sharp correction in bonds as an asset class.
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