Global Bonds Rally as Investors Brace for ‘Tough Summer’ in Equities

Investors have moved into safe-haven fixed income assets in recent trading sessions amid concerns the recent rally in stocks won't stay intact. 'I think it's going to be a tough summer for equities,' said Craig Erlam, senior market analyst at Oanda, referring to a host of global risks, including weak China exports and Brexit worries that have dampened investor sentiment. The rally in bonds was sparked by last Friday's dismal May jobs report and the European Central Bank's commencement of its corporate bond buying program. In a speech Wednesday, ECB President Mario Draghi stressed the importance of fiscal reforms to boost weak eurozone inflation. TheStreet's Scott Gamm reports from Wall Street.