Post by mangomoney on Jan 28, 2016 13:07:30 GMT 7
Morgan Stanley Says Stay Long as Global Yields Extend Below 1%
Yield on global bond index drops to 0.88%, lowest since April
Bond gauge rises this month 1.3% while stock index drops 8%
Morgan Stanley says bond investors should favor long-term securities after the Federal Reserve acknowledged there are risks for the global economy.
The yield on the Bloomberg Global Developed Sovereign Bond Index dropped to 0.88 percent Wednesday, extending its decline to the lowest level since April. Securities in the gauge have returned 1.3 percent in January. The MSCI All Country World Index of shares has fallen 8 percent.
The Fed refrained from raising interest rates Wednesday, while the Bank of Japan and European Central Bank may increase their efforts to reduce borrowing costs this year as they seek to boost their economies. Plunging prices for stocks and crude oil are damping inflation pressures and sending investors to the relative safety of government debt. Long-term bonds, also known as long-duration securities, stand to benefit most if yields fall.
www.bloomberg.com/news/articles/2016-01-28/morgan-stanley-says-stay-long-as-global-yields-extend-below-1-
Yield on global bond index drops to 0.88%, lowest since April
Bond gauge rises this month 1.3% while stock index drops 8%
Morgan Stanley says bond investors should favor long-term securities after the Federal Reserve acknowledged there are risks for the global economy.
The yield on the Bloomberg Global Developed Sovereign Bond Index dropped to 0.88 percent Wednesday, extending its decline to the lowest level since April. Securities in the gauge have returned 1.3 percent in January. The MSCI All Country World Index of shares has fallen 8 percent.
The Fed refrained from raising interest rates Wednesday, while the Bank of Japan and European Central Bank may increase their efforts to reduce borrowing costs this year as they seek to boost their economies. Plunging prices for stocks and crude oil are damping inflation pressures and sending investors to the relative safety of government debt. Long-term bonds, also known as long-duration securities, stand to benefit most if yields fall.
www.bloomberg.com/news/articles/2016-01-28/morgan-stanley-says-stay-long-as-global-yields-extend-below-1-
