Fixed interest markets set to recover

Bonds have shown surprising resilience in recent weeks against an extraordinarily robust economic background and a trend of rising interest rates. This may seem surprising and something that has not registered with several influential commentators who began the year in a pessimistic frame of mind after the disappointing bond outcome in 1999. This might equally be explained by lack of interest; bonds are resigned to playing second fiddle to equities in a world in which technology-related stocks are carrying all before them. The key issue for this debate is whether this recent strength mar...