ABN AMRO bearish on bonds

Paul Abberley believed that robust economc growth and inflationary pressures would force central banks to raise interest rates again in the future, meaning bond investors would find it hard to make gains. "There are signs that the disinflatonary effect from globalisation is beginning to wane," he said. Abberley believed Treasury investors should also be concerned about possible diversification by large sovereign investors away from the dollar and dollar assets, and about the impact that the higher energy costs would have on Treasuries. "That makes the Treasury market a bit more vulnerabl...