LONDON, Oct 6 - The rout in the fixed-income market is causing the"greatest bond bear market of all time", Bank of America Global Research said in a note on Friday, as the peak-to-trough loss in the U.S. 30-year yield hit 50%.
Yields on 30-year Treasuries rose above 5% for the first time since 2007 on Wednesday, pushing the yield up 15 basis points on the previous week and rattling investors. However, the entire bond market has not come under the same fire as 30-year debt. Yields on two-year Treasuries , fell 9 basis points in the week to Wednesday, as investors scooped up shorter-dated paper."No capitulation here," BofA strategists, led by Michael Hartnett, said.
BofA said its"Bull & Bear indicator", dropped to a five-month low of 2.6 on poor equity breadth, outflows from emerging markets, high yield bonds and developed market stocks.
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