Financial Times FT.com

Insight: Bond yields and equities diverge

By Richard Cookson

Published: August 31 2009 15:43 | Last updated: August 31 2009 15:43

Here’s a question that perplexes investors and traders alike: why on earth have government bond yields been falling recently even as equity markets have been climbing?

Alas, of the two structural longer term explanations to this question, although one strongly suggests a benign outcome for equities, the other is altogether more malign.

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