A wave of selling sweeping across bond markets resumed on Monday as investors continued to digest the impact of a Donald Trump presidency.
US and European bond prices have sunk in expectation that he will enact inflationary policies that speed the pace of interest rate rises.
Read the Full Article: Source – BBC NewsRead More
Time For Truth: (BBC News) – Bonds sell-off continues as investors bet on rate rise
In some ways, it really didn’t matter to Steven Major whether the U.K. voted to stay or to leave.
Sure, as a Brit, Major followed the U.K.’s surprising decision to break with the European Union. And, of course, the 51-year-old Londoner voted (though he politely declined to say whether he was in the “Remain” or “Leave” camp).
Driving interest rates below zero, the Bank of Japan has turned a comatose government bond market into an enormous free-for-all, complicating the central bank’s own efforts to kick-start growth and end deflation.
The $9 trillion market for Japanese government bonds had been all but paralyzed since the BOJ began a massive monetary easing three years ago that made the bank the dominant buyer.