(Bloomberg) — Investment-grade issuers may sell bonds at a faster pace next week after market volatility had pushed many borrowers to the sidelines over the past month. Estimates for next week’s U.S. high-grade bond sales call for $25 billion to $40 billion. That’s well ahead of this week’s sales, which fell shy of consensus for […]
Read More(Bloomberg) — Investors plagued by fear and shunning stocks are rediscovering a time-honored antidote: U.S. government bonds. That may seem surprising, given that the Treasury market has been battered by its worst losses on record this year. But with yields holding at the highest in years, the Federal Reserve on course to raise interest rates […]
Read More(Bloomberg) — A week that began brimming with economic optimism ended up caving in on stock bulls, who find themselves increasingly helpless in the face of determined Federal Reserve inflation fighters. It was a stretch that may be remembered as the time bond investors reestablished themselves as rulers of the asset-market roost. Surging yields, whipped […]
Read More(Bloomberg) — Long-maturity Treasuries are contending with their biggest drawdown on record, at least according to their most popular exchange-traded fund. BlackRock’s $19 billion iShares 20+ Year Treasury Bond ETF (ticker TLT) has fallen almost a third from an all-time high in August 2020. That’s more than the previous record drawdown seen between 2008 and […]
Read More(Bloomberg) — Traders of U.S. government debt were dealt a stern reminder last week not to sleep on a market that’s been headed in one direction for a long time. Yields had risen to the highest levels in years in anticipation of more Federal Reserve interest-rate hikes and the central bank beginning to shed Treasury […]
Read More(Bloomberg) — Brazilian traders know inflation. After decades of dealing with wild bouts of it, they consider themselves experts on the topic. Their American counterparts, they say, got complacent. Years of subdued inflation in the U.S. have lulled them into a false sense of security, as the Brazilians see it. This in turn, the argument […]
Read More(Bloomberg) — The relentless selloff in Treasuries continued Tuesday, threatening to mark a resolute end to the four-decade bull run in bonds, at least according to one key metric. Benchmark 10-year yields rose above 2.80% to the highest since December 2018 as traders bet the Federal Reserve will ramp up the pace of tightening to […]
Read More(Bloomberg) — Bond markets and the S&P 500 are too sanguine about the economic outlook, according to Morgan Stanley’s chief U.S. equity strategist. “We have another example of extreme divergence between the internals of the stock market which are strongly indicating a growth scare, while bonds and the S&P 500 are suggesting growth is not […]
Read More(Bloomberg) — The relentless rise in U.S. Treasury yields continued to send waves through global markets Monday, at the start of a key week for inflation watchers. Ten-year yields climbed through 2.75% for the first time since March 2019 as investors priced in the impact of the Federal Reserve’s tightening plan and accelerating inflation. The […]
Read More(Bloomberg) — The U.S. bond market is hurtling toward the clearest sign yet that the Federal Reserve’s shift into a hawkish gear is making a difference — a real 10-year interest rate higher than 0%. While all Treasury yields have climbed this year as the Fed began what’s expected to be an aggressive series of […]
Read More(Bloomberg) — Investors should get out of bonds as rates rise and diversify their portfolios with exposure to commodities such as agricultural products, oil and metals facing supply disruptions due to the war in Ukraine, according to Rebecca Patterson, chief investment strategist for Bridgewater Associates. “You should absolutely have commodities in your portfolio,” Patterson said […]
Read More(Bloomberg) — Stock investors shouldn’t fret about U.S. treasury yield curves inverting just yet, JPMorgan Chase & Co. strategists said, as a global bond selloff gathered pace. “Recessions don’t typically start ahead of the curve inverting, and the lead-lag could be very substantial, as long as 2 years,” the strategists led by Mislav Matejka wrote […]
Read More(Bloomberg) — Treasuries slumped anew to send a widely-watched part of the U.S. yield curve to its first inversion in 16 years. The curve is flattening as investors bet the Federal Reserve will tighten policy rapidly enough to risk a sustained slowdown in growth. U.S. five-year yields climbed nine basis points to 2.63%, rising above […]
Read More(Bloomberg) — The U.S. rates market was hammered anew on Monday, with a selloff driving yields on short-dated Treasuries to one of their biggest daily jumps of the past decade after Federal Reserve Chair Jerome Powell said he’s willing to enact larger hikes if needed to fight inflation. The central bank chief’s hawkish tone led […]
Read More(Bloomberg) — It was perhaps the most widely-tracked coupon payment in history. After the Russian Finance Ministry on Monday sent an order initiating a $117 million payment due on dollar-denominated bonds this week, traders and money managers globally watched with bated breath as the money began to snake its way through the financial system. What […]
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