The low-interest-rate environment is a favorable backdrop for developed markets to retire pandemic-related debt. Central banks, meanwhile, may soon provide guidance on how they'll start unwinding assets.
Vanguard continues to anticipate the sharpest global recession in recent history, with growth in the United States and Europe contracting in the second quarter at the steepest pace since at least the 1930s.
Vanguard economists believe the global economy is most likely already in recession and expect negative growth for 2020. The depth of the downturn will depend on how long the most restrictive COVID-19 containment measures remain in place.