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Fasdal: Right on the money with bonds

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Last year, Saxo Bank’s Head of Fixed Income Strategy Simon Fasdal presented three bond market scenarios for 2014. Now it’s time to see if he was right on the money with his predictions.

Simon’s scenarios were as follows:

- Bond markets would only see a mild reaction to the US Federal Reserve’s tapering of its quantitative easing as much of the outcome had already been discounted for.

- European yields would stay low for a very long time.

- Emerging markets would see a strong rally in 2004 as investors sought opportunities outside Europe and the United States.

So how did bond markets actually perform in 2014?