This Is What's Happening Amid a Wild Week for World Bond Markets
Time to get used to volatility.
Who will buy my bonds?
Photographer: Jin Lee/BloombergThis article is for subscribers only.
There have been some big swings in the global bond market this week. Here's what's been moving -- and what hasn't.
It all started with German government bonds. Yields on 10-year bunds, which move inversely to price, jumped as much as 51 basis points over the week to touch the highest in more than eight months on Thursday as investors reacted to signs of inflation in the eurozone. Mario Draghi, President of the European Central Bank, helped fuel the sell-off by saying investors should "get used" to bond market volatility thanks to very low interest rates that can exacerbate price swings on the debt.