1149 GMT - Investors who expect bond yields to rise are likely to retain the upper hand over the next three-to-six months, even as the U.S. Treasury's decision to increase long-end bond buybacks has tamed the bond bears for now, LBBW's Elmar Voelker says."We strongly doubt that interventions by the U.S. Treasury Department will permanently prevent a further rise in the term premiums for long-term government bonds," the senior fixed income analyst says in a note. Holding back term premiums lastingly requires a credible shift in U.S. fiscal policy toward consolidation, he says. Only when investors are sufficiently convinced that there is no longer a good reason to fear further monetary tightening measures by major central banks is sentiment likely to shift more sustainably in a bond-friendly direction, he says.
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