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If you look at the top-performing sectors on the TSX this year, rate-sensitive stocks dominate
If you look at the top-performing sectors on the TSX this year, rate-sensitive stocks dominate
(Comstock Images/Getty Images/Comstock Images)

Bond market takes gloomy view of U.S. GDP revision

Stock markets and economists are busily shrugging off an unexpectedly harsh revision to U.S. economic growth figures for the first quarter. But the general don’t-worry-be-happy vibe has so far left out one notable observer: the bond market.

The story told by bonds – especially government bonds in the developed world – is rather downcast. The yield on the Bloomberg Global Developed Sovereign Bond Index hit its lowest point in a year on Wednesday. That suggests investors are coming around to the notion that interest rates will remain lower for longer than they thought a few months back, and so are increasingly willing to load up on bonds, even at their current miserly yields.