Bond buyers playing ‘cat-and-mouse game’ with central banks

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Bond buyers playing ‘cat-and-mouse game’ with central banks
Government bond yields could decrease as investors begin to expect that interest rates will be cut to stimulate growth (Anna Keibalo/Pexels)

Bond prices have risen sharply over the past month or so, driven mainly by central banks signalling that interest rates have peaked, and while that view may be slightly optimistic, “it shouldn’t put investors off fixed income”, says Chris Iggo, chief investment officer for core investments at Axa Investment Managers. 

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