Bonds are Selling Off Sharply
The bond market is having a rough few days. Yields are rising sharply as a result of a growing tide of central bank rhetoric that shows stimulus may soon be withdrawn from the market. Seemingly every major central bank including the BOE, Fed, ECB and the BoC, are all talking about higher rates and more stimulus. Treasuries have lost ground on the news and the Dollar has retreated sharply against a basket of rival currencies. BNP Paribas summed up investor anxiety, saying "The time is approaching when the [Federal Reserve] will no longer be the only major central bank in tightening mode".
FINSUM : It will be interesting to see how sharply yields react to central bank moves, or whether perceptions of low rates have become so entrenched over almost a decade now that bond yields will remain low.
- Central Banks
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