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A job board at Youth Employment Services in Toronto.
A job board at Youth Employment Services in Toronto.
(KEVIN VAN PAASSEN/THE GLOBE AND MAIL)

Economy will decide the fate of long bonds

Look to the jobs market to see if one of the biggest investing surprises of the year has any juice left.

This was supposed to a year of slow but steady improvement in the economy, which in turn would add some impetus for interest rates to rise. Instead, the economy has disappointed and bond yields have fallen. The long-term bonds that were thought early this year to be highly risky have turned out to be almost spectacularly good.