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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (88209)	12/1/2016 4:40:56 AM
From: John Pitera	Read Replies (1) \| Respond to of 218420

Global Bonds Suffer Worst Monthly Meltdown as $1.7 Trillion Lost Garfield Clinton Reynolds and Wes Goodman November 30, 2016 — 10:16 PM EST December 1, 2016 — 2:04 AM EST The 30-year-old bull market in bonds looks to be ending with a bang. The Bloomberg Barclays Global Aggregate Total Return Index *lost 4 percent in November, the deepest slump since the gauge’s inception in 1990.* Gathering U.S. economic momentum and Donald Trump’s election win -- with promises of tax cuts and $1 trillion in infrastructure spending -- spurred investors to dump debt that was offering near-record-low yields and pile into stocks. Calling an end to the three-decade bond bull market is no longer looking like a fool’s errand: the Federal Reserve is expected to start raising interest rates -- and do so more often than once a year, inflationary expectations are climbing and there are hints global central banks may be buying fewer sovereign securities going forward. Investors pulled $10.7 billion from U.S. bond funds in the two weeks after Trump’s victory, the biggest exodus since 2013’s “taper tantrum,” while American stock indexes jumped to record highs. “A lot of people are beginning to think that it is the end of the bull rally,” said Roger Bridges, the chief global strategist for interest rates and currencies in Sydney at Nikko Asset Management’s Australia unit, which oversees $14 billion. U.S. 10-year yields may rise to 2.7 percent in January, Bridges said. “The trend is your friend.” The rout wiped $1.7 trillion from the global index’s value in November, also a record, in a month that saw world equity markets’ capitalization climb $635 billion. Read More: Few bond investors are seeing an end to the rout The yield on 10-year U.S. notes rose 56 basis points in November, the biggest jump since 2009, and was at 2.38 percent as of 7:03 a.m. in London on Thursday. The average yield on the Bloomberg Barclays Global gauge climbed to 1.61 percent on Nov. 23, after touching a record low of 1.07 percent on July 5. The rise in yields shows the limitations of the quantitative easing policies at the biggest central banks, Bridges said. Bonds will be especially vulnerable if the European Central Bank discusses reducing its debt-purchase program at its Dec. 8 meeting, he said. bloomberg.com