Bond market rout is so bad that double-digit losses are normal

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 90%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The European Central Bank’s decision to end quantitative easing marks the “end of an era” and bond market investors are feeling global pain.

on euro high-grade corporate bonds, Bloomberg debt indexes show. The more rate-sensitive US dollar and sterling credit markets have already been nursing double-digit negative returns in 2022.

The global pain follows a brief respite in May, when investors hoped that slowing economic growth would help ease price pressure. But inflation has been sticky and oil surged yet again, pushing the ECB to announce that it will stop adding to the world’s biggest bond-buying program this month and raise rates soon after.

Both investment-grade and junk bonds slumped in Asia on Friday, and along with peers in the US are on track for their first weekly loss since early May as bets increase that global monetary authorities must do more to beat down inflation.“The Fed will be raising rates, no chance of a pause, certainly not for the next 12 months,” Michael Spencer, chief economist and head of research at Deutsche Bank, said in an interview on Bloomberg Television.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘The return of banditry’: Russian car industry buckles under sanctionsPrices have spiralled out control since invasion of Ukraine as market struggles to adapt
Source: GuardianAus - 🏆 1. / 98 Read more »