Growth figures support both bonds and equities

The post-June rise in bond yields should not have a negative impact on equity markets, consensus suggests. While there were fears that the unwinding of the flight to quality seen in the recent sell-off of bonds would have a negative impact on the equity market, this likelihood has been reduced by a genuine shift in growth expectations. Peter Oppenheimer, an analyst at Goldman Sachs, says the bond sell-off was largely triggered by the Federal Reserve's 25 basis point cut in June. Asset allocators have had to decide how much the rise in yields was a result of investors worrying they were ...