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LONDON (Reuters) – Bank of America Merrill Lynch said in its latest monthly survey that investors have bought bonds to provide security as quickly as possible since the 2008 global financial crisis, as trade tensions between China United States had heightened the outlook for 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 risk for US government bonds. 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 Bank of America investors are predicting a global recession in the next 12 months, its highest level since 2011.
Goldman Sachs said last week that he no longer expected a trade agreement between Washington and Beijing before the US presidential election of 2020 and that the outlook for a recession resulting from the long commercial war increased.
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.
As for equities, the United States is considered the most favored region by investors over the next 12 months as they continue to flee Europe.
(Reuters)
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