Government Bonds Are In A Bull Market

General consensus seems to be that pressure downwards in bond prices is inevitable due to the Fed’s presumed future interest rake hikes. Morgan Stanley disagrees. In a note to clients:

“There is always a bull market somewhere and right now it’s in government bonds.”

“We believe the idea of additional easing by the ECB and BoJ will underpin the recent bid for duration over the coming months. We expect the idea of additional sovereign bond buying by the ECB and BoJ to also buy time for duration longs to hold on.”