A case of role reversal (TT Jan03 p23-24)

After a year in which government bonds rallied while corporate spreads widened, 2003 is likely to throw both trends into reverse. The global economy has bottomed, the next move by central banks will be to lift rates, and spread products are comparatively cheap. In this environment, government bonds yields should rise modestly and credit spreads tighten over the course of the year.