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JPMorgan Sees New Normal in Bonds as Slowing China Crimps Yields

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China’s slowing economy will suppress global bond yields even as the Federal Reserve considers a rate increase, threatening returns for investors who rely on higher coupon payments, according to JPMorgan Chase & Co. and Nomura Holdings Inc. Average yields on bonds globally have dropped 8 basis points this quarter to 1.64 percent, according to a Bank of America Merrill Lynch index. The decline comes after...

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