Global Bonds Are Suffering the Worst Start to a Year Since 2013
- Longer maturities incur heaviest losses as inflation weighs
- Lower-rated junk bonds among the few gainers in debt markets
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U.S. investors return Tuesday from the Presidents’ Day holiday to find the reflation trade in full force and global bond markets in retreat. How bad can it get for fixed-income investors, and where can they find solace?
It’s the worst start to a year for the Bloomberg Barclays Global Aggregate Index since 2013. Bonds fell in the first months of that year even before the so-called taper tantrum, when then-Federal Reserve Chairman Ben Bernanke triggered a jump in yields by suggesting the central bank could begin to reduce asset purchases.