Relevant:
- Paradise Lost: Why the Good Times Are Over for Global Bonds
- Bond Market Rout Just Wiped Out $1 Trillion From Investors
- ‘An Odd Time' as Many Government Bonds Trade Below Zero Yields
- Mind The $76 Trillion Global Bond Bubble----Even The ‘Experts' Are Getting Scared
- Markets Applaud Draghi's New, Improved Kick the Can Down the Road Strategy
2016-12-03 — wolfstreet.com
On Thursday it got worse. It started in Europe where government bonds got crushed after speculation surfaced that the ECB might not keep buying bonds until hell freezes over, that in fact it might begin tapering its QE program as soon as next year. The markets were aghast.
...
In terms of dollars and cents, the CME CBOT 30-Year US Treasury Bond Price Index has now lost 8.5% since Election Day, and 14.8% since July. This is a bitterly ironic twist for those investors who consider them among the most conservative investments in the world...
This bond market "carnage" is accomplishing something else: It's gutting negative yields -- and all those who've bought these bonds when yields were at their most negative.
This post also excellently illustrates the "contagion" aspect -- the breakdowns are illustrating the disturbing extent that bond markets had also been all floating on the same pool of global QE/NIRP on the way up (as we've been pointing out on this site for years now), giving lie to the claim that one region and market is "doing fine" even with another region or two engaging aggressively in QE to keep the game going.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.