Broad Declines Drag Bonds Into Rare Bear Market

to fight inflation, even at the expense of economic growth. That has slammed government bonds too.

Normally, investors rely on bonds to be safer than stocks. But in the past 12 months, owning bond funds has been more damaging than owning the S&P 500. TheFederal Reserve Chairman Jerome Powell, speaking at the Kansas City Fed’s recent symposium in Wyoming, said the central bank must continue raising rates until it is confident inflation is under control. Photo: Jim Urquhart/Reuters

So far in 2022, the extra yield investors charge to hold company bonds instead of ultrasafe government debt—known as the spread—has risen alongside Treasury yields in 16 out of the year’s 35 weeks to date. With 17 weeks to go, that is already far more than in any full year going back at least two decades.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

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

US housing market decline to worsen in 2023, Goldman Sachs warnsGoldman Sachs has warned that the housing market downturn will get worse in 2023 when home price growth will reach a stall.
Source: nypost - 🏆 91. / 67 Read more »

Walmart latest to tap bond market with $5 bln offeringsWalmart Inc will raise $5 billion in bond offerings, joining a host of big retailers and restaurant chains to tap the debt market ahead of the U.S. Federal Reserve's next potential rate move. When walmart goes to bond market, you know times are about to get really tough.
Source: Reuters - 🏆 2. / 97 Read more »