14.07.2020 | Global stimulus is running out before the pandemic has been defeated
by Ambrose Evans-Pritchard - The Telegraph
Global bond markets refuse to ratify a V-shaped economic recovery. Futures contracts in fixed income derivatives are even more bearish, signalling nothing less than a worldwide deflationary slump as far as the eye can see.
“If markets are pricing a 'V', they’re going about it in an odd way,” says Andrew Sheets from Morgan Stanley.
It is simply not true that investors are ignoring the massive economic shock of the pandemic. The picture is being distorted by equities, and within that by a clutch of US tech stocks in the grip of a parabolic spike all too like the final phase of the dotcom bubble in 2000. But debt markets are three times bigger and ultimately matter far more.
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