Economics

Bond Market’s Slide Deepens as Traders Waken From Stimulus Coma

  • Yields rise as investors mull limits to global monetary easing
  • U.S. 10-year yields climb to highest since May as bunds tumble

TIAA Global Asset Management's Low-for-Long Bond View

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Global bonds plunged as investors reconsidered how much longer central banks in advanced economies will maintain exceptional monetary policy.

The slide began in European trading hours and cascaded into the U.S., where Treasury 10-year note yields climbed to the highest since May amid increasing confidence that the Federal Reserve will tighten policy in December. U.K. gilts spurred declines after a report showed Britain’s economy grew more than forecast in the third quarter, paring expectations that the Bank of England will cut interest rates further to cushion against possible Brexit fallout.