An ill wind that blows some good

As one would expect, the ill wind of a US-led global slowdown has created a positive environment for bond investors around the world. Between the start of the new millennium and the end of May 2001, benchmark 10-year US Treasury yields fell by more than 100 basis points (1%). Elsewhere, yields have typically fallen somewhat less, around 20 basis points in Europe and 40 in Japan. A sterling investor would have generated a gross return of around 12% from investing in the components of the JP Morgan Global Bond Index but would actually have made more (14%) from a non-interest bearing US doll...