New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP
New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

Falling bond yields may be less a sign of a bubble than a reflection of the long-term trend of a mature market

  • The low interest rates and bond-buying schemes of central banks are pushing up prices, creating what some fear to be the mother of all bubbles in bond markets
  • But with no sign of investor speculation, gradually falling bond yields may actually be the result of a structural market change

Kerry Craig
Kerry Craig

Updated: 4:23am, 29 Feb, 2020

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New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP
New US dollar bills are cut and stacked at the US Bureau of Engraving and Printing in Washington in 2017. The US government bond market is the most expensive it has ever been, and the period of low interest rates and cheap money is often viewed as the culprit. Photo: AP
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Kerry Craig

Kerry Craig

Kerry Craig is a global market strategist at JP Morgan Asset Management.