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Friday Speedrun: October 6, 2023
The only thing people in markets care about right now is the rise in global yields. It all has a bit of a disorderly feel to it as the back-end (longer-dated) maturities are getting hit, particularly in Japan and the US. Some of those bonds have lost 50% of their market value. Check out this chart, for example. A bond that was issued three years ago near 100 is now trading at 46. Sacré bleu! chart That is an eye-watering move, though it’s worth noting that the move in 2022 was faster and bigger than the move this year. As a general rule of thumb, when yields are going up very quickly, people get scared and sell ... (full story)