(Bloomberg) — US interest-rate strategists mostly expect that Treasuries will extend their recent rally, dragging yields lower and steepening the curve in the second half of 2023 so long as labor market conditions soften and inflation ebbs. The most bullish forecasts among those published by primary dealer firms — including predictions from Citigroup Inc., Deutsche […]
Read More(Bloomberg) — Investment-grade borrowers are expected to bring lots of new offerings next week to complete deals ahead of an anticipated holiday season slowdown. Dealers are calling for $10 billion to $15 billion in new bond sales, as the first full week of December is expected to be the most active period in the month. […]
Read More(Bloomberg) — Investors are finding value in bonds for the first time in a decade as higher interest rates make fixed-income attractive, according to JPMorgan Chase & Co.’s Bob Michele. Yields on the benchmark Bloomberg bond aggregate index have soared to 4.7% from 1.75% at the end of 2021 as the Federal Reserve embarked on […]
Read More(Bloomberg) — The odds are rising that corporate borrowers will struggle to repay their debts as the Federal Reserve opts for jumbo interest-rate hikes to combat inflation, according to UBS Group AG. Default rates for US leveraged loans could next year rise to 9% as long as the Fed stays on its aggressive monetary-policy path, […]
Read More(Bloomberg) — The worst bond rout in decades is drawing more investors to government debt, with JPMorgan Asset Management joining the growing camp of bulls. Longer-dated sovereign notes in most developed markets are starting to look appealing given that yields are at levels last seen in 2010, according to Arjun Vij, a money manager at […]
Read More(Bloomberg) — Investors who might be looking for the world’s biggest bond market to rally back soon from its worst losses in decades appear doomed to disappointment. The US employment report on Friday illustrated the momentum of the economy in face of the Federal Reserve’s escalating effort to cool it down, with businesses rapidly adding […]
Read More(Bloomberg) — One of the US bond market’s most widely watched indicators of potential recession risk has reached levels last seen in 2007. The yield on the benchmark 10-year Treasury note dropped as much as 12 basis points below the 2-year rate, eclipsing the 9.5-basis-point gap reached in early April. The gap was pared to […]
Read More(Bloomberg) — Treasury traders are throwing down the gauntlet to a Federal Reserve that’s fallen further behind in its fight to cool the hottest inflation in four decades. A bruising bond selloff ensued Friday, led by policy-sensitive short-term yields, after May data dashed any idea that inflation has peaked. The rout deepened when traders boosted […]
Read More(Bloomberg) — US Treasuries tumbled, sending 2-year yields surging by the most since 2009, after an unexpected jump in inflation increased speculation the Federal Reserve will need to raise interest rates more aggressively over the next few months. The surge in consumer prices in May to a fresh four-decade high surprised investors who were looking […]
Read More(Bloomberg) — Bonds in almost every corner of the $63 trillion global debt market are bouncing back as investors begin to see value once again in fixed-income assets. Global investment-grade debt has returned almost 1% in May, the first monthly gain since July, while US Treasuries are heading for their best month since November, according […]
Read More(Bloomberg) — Investors who are fretting that the Federal Reserve’s campaign to tame inflation is putting pressure on stocks might want to take a closer look at corporate bonds. Money managers will be watching risk premiums across US credit markets next week as levels inch closer to what strategists have pointed to as a warning […]
Read More(Bloomberg) — A few brave souls in the investing world are starting to move back into bonds to ride out an oncoming economic storm. While debt bulls on Wall Street have been crushed all year, market sentiment has shifted markedly over the past week from inflation fears to growth. Market-derived expectations of US price growth […]
Read More(Bloomberg) — The relentless bear market in U.S. Treasury debt is on the cusp of a new phase, with yields across much of the maturity spectrum on course to crack above their 2018 highs and several major potential catalysts to help such a move. Center stage will be April consumer price inflation on Wednesday, forecast […]
Read More(Bloomberg) — In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round. Japanese institutional managers — known for their legendary U.S. debt buying sprees in recent decades — are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion […]
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 […]
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