British bond market turmoil is sign of sickness growing in markets, says leading strategist

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Nomura strategist: British bond market turmoil is sign of sickness growing in markets

Nomura’s Charlie McElligott says as leading policymakers head to Washington for the International Monetary Fund/World Bank meetings, the rest of the world is dealing with a dollar DXYsurge that is exporting inflation to everyone else, forcing their own policy tightening into recession feedback loop.

The price of the 30-year inflation-adjusted gilt plummeted 17% in value on Monday, according to FactSet data. McElligott said the core issue is that penson funds globally have been shifting assets to alternative buckets, such as private equity and venture capital.

 

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