How the World’s Biggest Bond Managers Are Investing in a Tumultuous Market
- A worsening global bond sell-off is pushing average yields to nearly 4%, levels unseen since 2007. Bloomberg's Global Aggregate Treasuries index rose eight basis points to 3.99% on Wednesday.
- Mounting fiscal concerns and strong economic data drove a $70 billion five-year Treasury auction on Wednesday to its highest yield since 2006. The auction ranked second-worst since 2018, reflecting Washington's rising cost of servicing $40 trillion in debt.
- Five-Year yields topped 5% on Wednesday for the first time since 2007, as traders ramped up bets on further Federal Reserve tightening. Swaps now fully reflect three quarter-point hikes over the next year, with significant hedging for a fourth.
- Yield pressure spread to Asia on Thursday, as Australian three-year yields jumped 13 basis points to 5.07%, the highest since May 2011. Japan's 10-year yield hit its highest level since 1996 following a three-day market break.
- Strategists at JPMorgan Chase and KKR see scope for yields to climb further as energy-driven inflation and heavy government borrowing persist. Padhraic Garvey, ING Groep's regional head of research for Americas, wrote the move is "likely far from over.
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61 Articles
Bond vigilantes on a savage hunt as global yields run wild
TOKYO — The bond vigilantes are back — and now they’re patrolling every major debt market at once. As deficits balloon, spending runs unchecked and oil prices spike, investors are reasserting control over markets that once seemed shielded from shocks and sending yields skyrocketing. The revolt spans the US, Japan, Europe and beyond as a […]
US Market: Bond fund managers turn cautious as yields, AI debt raise risks
Leading US bond fund managers overseeing nearly $700 billion are adopting a cautious stance as Treasury yields near 5% and corporate debt valuations remain stretched. Investors are prioritizing high-quality, short-duration assets and selective security picking over aggressive rate bets amid risks from rising AI-related debt issuance and persistent inflation.
Oil price? Rises. Inflation? Rises. Supply shortages? Grows. All of this leads to an increasing concern on the bond markets. What threatens there.
International Monetary Fund and OECD sound the alarm on debt and debt service costs: "It is time to take action" The post Record in bonds: New jump in yields in Europe and the US appeared first on in.gr.
Global equities are under pressure as US bond returns rise to their highest levels since 2007 and oil rise, reinforcing inflation concerns and continuing interest rate hikes.
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