Treasuries investors, 2021 could turn out to be even worse than eight years ago.
The latest bond selloff -- triggered by a hawkish shift in the Fed’s signal on its policy path -- has left the Bloomberg U.S. Treasury Index down 2.2% this year, on track for the first annual loss since 2013, when it declined 2.8%.
The market is hardly anticipating a repeat of the rout eight years ago, when then-Fed Chairman Ben Bernanke triggered a surge in yields after he suggested the central bank could begin to reduce asset purchases. In that episode, 10-year yields jumped more than 100 basis points in four months.
Ye Xie Bloomberg 2 oktober 2021