2017-07-22theguardian.com

Dhaval Joshi, chief European investment strategist at BCA Research, said the bond boom had come to an end as the fog around the course of interest rates, made worse by Brexit and the election of Donald Trump, intensified.

"When the Federal Reserve signalled that it would begin to raise interest rates, it changed the story. Since then there hasn't been a clear path," he said.

Major bond investors got burned by this turn of events and while their initial reaction was to instruct the banks to switch their portfolios -- prompting a rise in trading fees -- they are now reluctant to take big bets.

Joshi says the long-run trend for low inflation and low interest rates is about to reassert itself. This might mean a few more fees for the bank's bond departments as asset managers adjust their holdings again. But in the longer term, it means a loss of business as investors go back to just holding long-term positions.



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