With some of the biggest names in the market urging caution and governments flooding the market with paper, debt traders braced for what they feared could be the final days of a three-decade bull market.European debt securities and U.S. Treasuries were relatively steady ahead of a sale of more than a combined $30 billion worth of bonds expected to be sold by the U.S., Germany, Italy and Portugal. Sentiment was fragile, with billionaire fund manager Bill Gross saying on Tuesday that bonds have entered a bear market, noting that 25-year trend lines had been broken in five- and 10-year Treasury maturities. DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said markets had not priced in shrinking central bank balance sheets.Debt markets are being weighed down by prospects of central banks in Europe and Japan moving away from their stimulus plans. Markets were also braced for possible debt syndications from Italy and Portugal, alongside a German auction on Wednesday. The U.S. Treasury auctions $20 billion of 10-year debt in a re-opening later in the day.
Source: Global Bond Markets on Tenterhooks as Sentiment Stays Fragile – Bloomberg
US Futures Tumble on China Treasuries Reports
Follow the Yield, and Then Follow the Currency
DAX Slips, Investors Eye ECB Minutes
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- OANDA Market Insights – Episode 94 (Video) - 12/06/2019
- OANDA Market Insights – Episode 94 (Podcast) - 12/06/2019
- Week Ahead – The UK election is upon us - 12/06/2019