Economics
Global Bonds Post Biggest Decline Since 2013 on Fed View
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Global government bonds posted the biggest two-week drop in 14 months on concern the Federal Reserve will alter the language of next week’s policy statement to indicate officials are closer to lifting interest rates.
The Bloomberg Global Developed Sovereign Bond Index has fallen 2.2 percent since Aug. 29, the worst 10-day performance since June 2013. There’s a 61 percent chance the central bank will increase its benchmark rate by July 2015, up from 53 percent a month ago, federal fund futures showed. The rates outlook and a strengthening economy pushed the yield gap between U.S. 10-year Treasuries and Group of Seven peers to the highest in more than seven years. The Fed meets on policy Sept. 16-17.