The Bloomberg Global Aggregate bond index, a key benchmark, is near falling into a bear market for the first time in decades.
Federal Reserve Chairman Jerome Powell's comments last week in Jackson Hole, Wyoming, have sent global bond markets into a slump. Powell spoke Friday, capping off the central bank's economic symposium. In his speech, he noted that the Fed will continue to raise interest rates to curb high inflation, but that the U.S. economy would likely see some pain ahead . The hawkish stance surprised investors and led to a bond-selling rout. Bond yields rise as prices fall.
Bonds slipping on Fed speak Yields ticked up after Powell's speech, sending prices down — although not at the same pace as stocks. "Although the stock market sold off sharply following Fed Chair Powell's Jackson Hole speech last week, bond yields only rose modestly as the bond market has already been pricing in an aggressive pace of rate hikes," Collin Martin, fixed income strategist at Charles Schwab said in an email Tuesday. He added that while yields on the U.S.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
States get stingy as sour economy drains their surplusesThe good news: Massachusetts has more money than it knows what to do with. The bad news: Massachusetts has more money than it knows what to do with.
Read more »
5 million jobs could be lost in the Fed’s war against inflation, analysis saysThe battle against inflation could strike a major blow to the job market.
Read more »
Pain of breaking inflation will reverberate around the globeJACKSON HOLE, Wyo. (Reuters) -The message from the world's top finance chiefs is loud and clear: rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets. Central banks spent decades building their credibility on inflation fighting skills and losing this battle could shake the foundations of modern monetary policy. 'Regaining and preserving trust requires us to bring inflation back to target quickly,' European Central Bank board member Isabel Schnabel said.
Read more »
Is Now a Bad Time to Retire?Those nearing retirement can take some comfort in research showing that even people who retired at the worst moments of the past century could have made their money last by sticking to certain rules
Read more »
How much it costs to hire freelancers to help my small businessJen Glantz is an entrepreneur and the founder of Bridesmaid for Hire. She budgets $400 a month to hire freelancers to do work for her small business. In partnership with IndeedforSMB
Read more »