Long-dated bonds likely to see continued support

Long-dated bond prices are expected to remain supported despite the lack of rate cuts in this month's round of monetary policy meetings. The US Federal Reserve, European Central Bank (ECB) and the Bank of England's Monetary Policy Committee all opted to leave official rates untouched earlier this month, in line with most market expectations. The yield curve has steepened in anticipation of a pick-up in inflation and economic growth but the Federal Reserve is still more concerned about the threat of deflation than anything else. Stewart Cowley, head of global fixed interest at Newton,...