Sars no more than a temporary blip

War and a fatal flu virus have dominated newspaper headlines. Yet most bond analysts agree that while the Iraq war dampened economic activity and bond markets worldwide, the Sars virus is a temporary blip that has been sensationalised by newspaper editors. 'It is difficult to quantify what impact Sars has on bond markets,' says David Lloyd, director of fixed income at Henderson in London. 'There are two issues here ' market sentiment and economic activity. Market sentiment is temporary. Economic activity is more persistent.' According to Lloyd, Sars is just another piece on the downward...