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Strategists: The global bond market is the worst in 73 years


Washington, SANA- The global bond market witnessed continuous collapses without a clear end, and with the central banks in


The global bond market has been in constant meltdowns with no clear end, and with central banks around the world aggressively raising interest rates to counter inflation, bond prices have fallen sharply.

"The government bond markets are on their way to the worst annual performance since 1949, when Europe was rebuilding itself after the Second World War," Sky News quoted strategists at the US commercial bank (Bank of America Corp) as saying.

British five-year bonds have fallen the most since 1992, after the government introduced a massive tax-cutting scheme.

The two-year US Treasury bonds are also witnessing the longest losing streak since 1976, with their 12-day decline in a row.

The bond losses illustrate how big the difference is between the monetary policies of the Federal Reserve, other current central banks, and the policies pursued by the same banks in the period of the Corona epidemic, when they kept rates close to zero to maintain activity in their economies.

The reversal of the monetary policy of the central banks caused great pressure on everything, according to a report published by the agency (Bloomberg), that extended from stock prices to oil prices, due to investors’ preparation for a possible economic recession.

In turn, Peter Bokfar, an investment officer at the (Bleakley) Consulting Group, considered that “the years of very low interest rates are now over,” noting that “global market bonds are currently being traded, as are bonds trading in emerging markets, and that the largest financial bubble is In the history of sovereign bond bubbles continue to shrink.”

Bonds recorded a significant decline, when the US Federal Reserve raised the interest rate by 75 basis points to the level of 3 to 3.25 percent, the third time in the same value and the fifth during the year.

The last time the global bond market experienced a bear market was in 1946, the first year of the United Nations sessions in London following the end of World War II.

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Source: sena

All news articles on 2022-09-27

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