JPM looks at the history of asset allocation in other countries using the US as example:
The steady fall in UST yields, despite a strong economy and a large deficit, raises the prospect that the US could join the zero bond yield world of Japan and Europe in the next few years.
ECB and BoJ have effectively fallen into a liquidity trap where extra liquidity has little impact given a weakened financial sector, the zeroyield bound, and backward-looking inflation expectations.
