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No re-run of 1994 treasury market carnage

Friday, March 23, 2012 - 01:17

Mar. 23 - A '1994-style' bond market rout is unlikely this year, but market analysts aren't ruling out a quick change in sentiment.

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A quick sent off in US assets or other safe haven assets it is is is a bit more unlikely it's it's a slow and gradual process so I'm not expecting a big -- under president expecting more of a normalization over the course of the year. There's no doubt the government bonds are out of very expensive relative to history and we think it's probably unlikely that that the US ten differences is going to be offering 2.3 percent. Yield by year end. I think -- trucks is quite slim I think there's. There's -- distributions -- -- them if we get to settle things so -- bond market's peak calls we've got unexpectedly hall economic growth. And that actually -- -- -- -- of less than half scenario. And but I think -- what's going on in yields is something that's been in the offing for a number of months now which is that. In order for this rally should be to mature into the next phase. And again become more vulnerable you need to see yields moving -- I'd be surprised if we sort of really quick tender sentiment that course. The bull market -- collapse quickly. But. Clearly that stat that's a risk and I'm not I'm not something. Investors are gonna be conscious self.

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No re-run of 1994 treasury market carnage

Friday, March 23, 2012 - 01:17