Rolling coverage of the latest economic and financial news
- Bond yields are bouncing back as prices start to fall
- Investors less worried about trade wars and Brexit…
- …and may have driven prices unsustainably high
The big worry is that the rise in bond yields will leave some investors with unpleasant losses.
At the end of August, the amount of debt trading at negative yields surged to $17 trillion, an all-time record. But in recent days, this has dropped back to $15 trillion.
Britain’s sovereign debt is also under pressure this morning, sending yields up to six-week highs.
The yield on UK 10-year gilts jumped to 0.666% this morning, up from a low of just 0.339% a week ago. That means it would cost the UK government more to borrow for a decade – although it’s still cheap in historic terms.