Bond Sell-Off Is Coming Back

Pascal Blanque, group chief investment officer at Amundi Asset Management says markets are pricing at a lot of monetary easing. Europe’s biggest fund manager says now is not the time to dip into global bonds, which have stabilized since their sudden decline earlier this month.

“After the huge bond rally we have seen in the last three months, we have come to expect that much was expected from central banks,” Blanque said in an interview in Singapore.

Bloomberg Barclays Global Aggregate Bond Index, which shoots down investment-grade debt worldwide, has fallen nearly 1% since late August and is on track for its worst month since last October .

With so many global debt having negative yields, emerging markets can be a bright spot for investors, he said. Blanque likes dollar-denominated debt from Brazil, Mexico, Ukraine, Russia, Bahrain, Serbia and Indonesia. These countries may be more isolated from the US-China trade war and in some cases have withdrawals due to fiscal credibility, he said./investing

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