The worst month ever. That’s what November 2016 was for bonds worldwide. The Bloomberg Barclays Global Aggregate Total Return Index lost 4%, the most since the index was first compiled in 1990. The yield on the 10-year Treasury Note soared the most since 2009. Just since September, global bonds have lost a stunning $2.8 trillion in value. Trillion with a “T”. The stock market has (so far) been a beneficiary of the move in bonds, with capital clearly rotating into stocks from bonds. But again, the real issue is the speed and magnitude of the move. If rates move too far, too fast, that’ll eventually hurt stocks – just like it did in 2013.
The Worst Month Ever
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that’s what happens when everybody piles into one trade. always good to think outside the box.