Bond market strength likely to continue

04/20/05 - Rabo Securities

NEW YORK, April 20 (newratings.com) – Analysts at Rabo Securities anticipate continued strength in the bond markets in the near term.

In a research note published this morning, the analysts mention that the upturn in the equity markets is likely to continue on the back of robust quarterly results from Intel and Yahoo. Meanwhile, bond yields have continued to decline after the release of the ZEW index in Germany and lackluster PPI (Producer Price Index) data in the US, Rabo Securities says. However, the sluggish economic activities and growth statistics of the recent past in the US do not warrant any questions over the economic strength as yet, the analysts add. In the current economic scenario, Rabo Securities expects even in-line CPI (consumer price index) data in the US to support the bond markets.