The pound briefly fell to a 14-month low against the US dollar on Thursday morning after the sell-off in the bond market fuelled investors’ anxiety about UK assets and piled further pressure on the chancellor, Rachel Reeves. Sterling extended recent losses against the US dollar, falling by a cent at one point, before recovering to … Read more
UK government bonds have been selling off sharply, which has sparked a surge in borrowing costs, sparking concerns that this will put pressure on chancellor Rachel Reeves to further raise taxes and cut spending. Fears of stubborn inflation have led to expectations that central banks will slow down their pace of interest rate cuts this … Read more
Hong Kong should tackle the government deficit by issuing more bonds to fund infrastructure investment and use part of its reserves to boost spending, one of the city’s leading business schools has proposed, stressing the shortfall will not be eliminated through economic growth alone. In a paper published on Thursday, the University of Hong Kong’s … Read more
What’s going on here? Global bond markets took some tough hits this week, sending bond yields to serious heights. What does this mean? Investors aren’t loving the current reality of stubborn inflation, shaky politics, and ballooning country debt loads – so they’re putting some distance between bonds and their portfolios. As a result, bond prices … Read more
A handful of companies have held back on selling high-grade corporate bonds in the US after yields have climbed in the last week close to their highest levels since the middle of last year, boosting potential borrowing costs. Sales have generally been relatively active in the first few trading days of January, but at least … Read more
The bond market sell-off has revived fears about rising borrowing costs after the crisis that followed Liz Truss’s disastrous mini budget in 2022. However, experts are suggesting there is no need to panic. Here is what it may mean for mortgages, pensions and savings. Mortgages Rates on new fixed-rate mortgages could start to creep up … Read more
Stanley Black & Decker’s turnaround looks less and less promising as the bond market revolts against the Federal Reserve’s interest rate cuts. We’re at a crossroads with the stock. Shares of Stanley Black & Decker continue to underperform despite the Investing Club’s long-held belief that a rebound in the housing market would follow Fed monetary … Read more
Eurobonds are debt instruments issued by a country in a currency different from its own. Eurobonds have risen to prominence in Africa because they have opened a window for governments to diversify their funding sources from traditional concessionary loans offered by the International Monetary Fund (IMF) and foreign aid, both of which are declining. In … Read more
Rachel Reeves has a bond market headache. After a rise in the government’s borrowing costs, with the 10-year cost of debt hitting the highest level since 2008, the chancellor is in danger of breaking her fiscal rules. For the past 15 years, western governments have been able to rely on the financial markets for cheap … Read more
Pictet Asset Management Chief Strategist Luca Paolini shares his insights as to whether investors should be leaning heavier into bonds (^TYX, ^TNX, ^FVX) or equities (^DJI, ^IXIC, ^GSPC). “When you look at valuation alone, there is a clear and strong case for bonds now,” Paolini explains, adding “unless you expect something really terrible to happen … Read more