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Allianz Research warns bond-market outlook may worsen first

Allianz Research analysts say the bond-market outlook could get worse before it gets better, citing a negative feedback loop between higher rates and debt sustainability.

The bond market outlook could get worse before it gets better, Allianz Research analysts say in a note. "While current yield levels look attractive, the negative feedback loop between higher rates and debt sustainability could trigger self-fulfilling prophecies in several countries," they say, poin…