Global Bond Markets Unwind Aggressively on Fiscal Promises
- Treasury yields jump the most since 2016 on Trump tax relief
- Moves spread into Europe, with disaster hedges coming off
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Global bond markets snapped back aggressively from their phenomenal rally over the past week on bets that governments will introduce fiscal measures to deal with the economic fallout from the coronavirus.
Treasuries led a sell-off in haven assets -- with 10-year yields poised for the biggest jump in over three years -- as stocks and oil markets rebounded from their rout Monday. The moves spread to Europe, with German bond yields surging higher and U.K. short-end rates moving further away from the 0% threshold that they had breached for the first time ever.