The Great Bond Bubble Is ‘Poof, Gone’ in Worst Year Since 1949
Bonds keep sliding in the face of aggressive central banks
Losses mount as Fed vows to pull inflation down to 2% target
Two-year US Treasuries are in the middle of the the longest losing streak since at least 1976, dropping for 12 straight days.
Worldwide, Bank of America Corp. strategists said government bond markets are on course for the worst year since 1949, when Europe was rebuilding from the ruins of World War Two.
Peter Boockvar, chief investment officer at Bleakley Advisory Group. “These bonds are trading like emerging market bonds, and the biggest financial bubble in the history of bubbles, that of sovereign bonds, continues to deflate.”
Fed Chair Jerome Powell said the bank “is strongly resolved to bring inflation down to 2%, and we will keep at it until the job is done.”
Longer-dated yields are lagging the rise as traders price in the risk of a recession. Still, the 10-year hit as much as 3.82% Friday, a 12-year high.
A broad Treasury index, /price/ down over 12% this year.
Bloomberg 24 September 2022
Kommentarer