Faith in bond bull market despite surge in US yields

A sharp rise in US bond yields has triggered a similar rise around the world but this has not been enough to dampen the enthusiasm of fixed interest managers for their asset class. Merrill Lynch chief global fixed income strategist Thomas Sowanick says there is significant risk of higher US yields and believes a move toward 10-year Treasury yields of 5% by year-end is a distinct possibility. 'Though the Fed has clearly encouraged investors to believe that incremental easing is still a possibility, it has also been quite deliberate in discouraging investors from believing that quanti...