Bonds: 35 year bull market has come to an end - ANZ

Global bond markets have moved from the bulls having the upper hoof to the bears having the upper paw with more and more signs the 35 year bull market in bonds has come to an end, suggests Research Team at ANZ.

Key Quotes

“The yield on a US 10 year Treasury has lifted 63 basis points since November 1 and is up around 100 basis points in the past couple of months. The Bloomberg Barclays Global Aggregate Total Return Index fell 4% in November; ouch. The speed by which the market has moved to embrace both a) an anticipated rotation from monetary policy to fiscal policy (limitations to QE, less bond buying and more bond issuing); and b) post Trump reflation, has been eye-watering. But one question remains unanswered: how will a world awash with leverage cope with higher interest rates? We suspect not very well.”