Tim Bond on China, Bonds and Interest Rates

Tim Bond, head of asset allocation at Barclays Capital, discusses in the video clips below the outlook for Chinese growth, as well as government bond yields and when the Federal Reserve Board will start raising rates. FT’s investment editor John Authers conducts the two-part interview that also covers a number of other topical issues.

Part 1:
Will Chinese domestic growth be the saviour of the global economy?

Click here or on the image below to view the interview.

Part 2:
Are bond yields normalizing? When will the Fed start raising rates?

Click here or on the image below to view the interview.

Source: John Authers, Financial Times, June 22 and June 23, 2009.

Comments

[Spartacus t...:]

Chinese price surge giving hope to global steel makers

steelguru.com/news/ind...

Long General Steel of China. NYSE: GSI

Jun 25 09:45 AM

[Hurricane:]

In the interview I believe Mr. Bond noted that because of the recession the private sector's demand for loans/debt issuance has fallen by more than the increased issuance and commitments of Treasury and the Fed. Certainly no crowding out" effect. Perhaps a shortage of options for those who "must" buy debt on a regular basis (e.g. insurance industry). How much does this impact the "success" of recent government auctions? Doesn't it give Bernake some "breathing room" on QE and some flexibility when he "removes the punch bowl?" Do others share Bond's view?

Jun 25 03:44 PM

[user396040:]

I think that the premium that treasuries command for being essentially default-risk free has been eroded by greater strength in the investment grade corporate market so that a bond buyer who wants to avoid risk probably perceives himself to have a larger universe of bonds to choose from. This may be responsible for the run-up in rates on 10 year treasuries.

Jun 25 04:15 PM

[User 357705:]

US is a high credit risk today no matter what Moodys say. High risk borrowers pay more interest. Its 'market forces' at work. Not very funny when you're on the receiving end of those vaunted 'market forces' is it?

Jun 26 07:00 AM