SINGAPORE (BLOOMBERG) - Bonds in almost every corner of the US$63 trillion (S$86.2 trillion) global debt market are bouncing back as investors begin to see value once again in fixed-income assets.

Global investment-grade debt returned almost 1 per cent in May, the first monthly gain since July, while United States Treasuries are heading for their best month since November, according to Bloomberg indexes.

A gauge of global corporate debt is set for its biggest advance since July, while emerging market sovereigns from Mexico to Malaysia are also in the green.

"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."

Asset managers including pension funds and insurers last week ramped up bullish wagers on Treasuries to the highest levels since April 2020.

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.

"It is a good time to increase your allocation to fixed income," said Mr Tai Hui, chief Asia market strategist in Hong Kong at JPMorgan Asset, which oversees US$2.5 trillion.

"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.