An overview of the bond bloodbath

Author: Adam Button | Category: News

US 10s are taking a hit but it’s nowhere near the pain in the periphery and the UK.

  • UK 10-year yields up 17 bps to 2.57% — highest since 2011
  • France 10-year yields up 14 bps — highest since July 2012
  • Italy 10s up 21 bps — highest since March
  • Spain 10s up 21bps — highest since March
  • Portugal 10s up 35 bps — highest since January
  • Canada 10s up 9 bps — highest since 2011

It’s an absolute rout around the globe. The question is: where is the money going? The short end of the curve is also selling off and so are stocks. At some point that money needs to find a home.

You can also be sure that central banks in struggling economies — ahem the UK — will not be pleased to see borrowing costs rising. This increases the chance of Carney making dovish moves at the BOE.