"I expect global bonds to deliver positive returns for the rest of this year," said Mr Akira Takei, a global fixed-income money manager at Asset Management One in Tokyo, who has been buying Treasuries. "Yields have fallen from their peaks because more and more investors see value in bonds. The worst of the bond market is behind us."
The rally in bonds has already pushed US 10-year yields down to 2.74 per cent from a three-year high of 3.2 per cent set in early May. Yields on similar-maturity German bunds have dropped to 1.06 per cent from a peak of 1.19 per cent three weeks ago.
"If you are not worried about recession right now, you are getting closer to the point where it is an attractive entry point in the market from the credit or fixed-income side," he said in an interview on Bloomberg Television."We are positive on investment-grade credit and selectively on high yield (in Asia)," he added.