Bond Market Turmoil: Historic Collapse and Surging Borrowing Costs
TL;DR
The sell-off in Treasury bonds, particularly those with maturities of 10 years or more, has reached historic levels, with losses of 46% since March 2020. This surpasses the losses seen in the stock market during the dot-com bubble burst and is even worse than the bond market crash of 1981. The aggressive turn towards monetary tightening by the Federal Reserve, concerns about rebounding inflation, and a surge in Treasury issuance have all contributed to the bond market rout. Investors, including Bill Ackman, Ray Dalio, and Bill Gross, anticipate the 10-year yield hitting 5% in the near future.
Topics:top-newsfinance#bond-sell-off#finance#inflation-concerns#interest-rates#market-crash#treasury-bonds
- Treasury-Bond Collapse Ranks Among the Worst Market Crashes in History Markets Insider
- Why borrowing costs for nearly everything are surging, and what it means for you CNBC
- World's biggest bond markets hit by big selling Reuters
- Fed's Barkin Says Yield Surge Reflects Strong Economic Data, Heavy Supply Bloomberg
- Long Bonds’ Historic 46% Meltdown Rivals Burst of Dot-Com Bubble Yahoo Finance
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