Investors turn to bonds because of fears of war

In its latest monthly survey, Bank of America Merrill Lynch said investors had bought bonds to provide security as quickly as possible since the 2008 global financial crisis, as trade tensions between China and the United States suggest recession.

Investors said US government bonds were the most traded for the third consecutive month, as they saw the US-China trade war as the biggest threat to the markets. .

The rising demand for bonds drove returns to a multi-year low in other developed countries as yields on German bonds, the safe haven of traditional Europe, hit record lows.

A third of investors surveyed expect a global recession in the next 12 months, the highest level since 2011.

The conflict between the two largest economies in the world has led central banks to adopt positions that tend to be monetary easing, with the Federal Reserve having to cut interest rates consecutively.