Cracks Are Appearing in Bond Market That Led Record Global Rally
- Japanese bond rout spurs concern selling will spread globally
- Goldman Sachs says changes in BOJ policy have worldwide impact
Should Markets Brace for Rising Rates Imminently?
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One of the pillars of 2016’s record-setting global bond rally is starting to buckle.
Japan’s sovereign debt is suffering its worst rout in 13 years, handing investors bigger losses over the past two months than any other government bonds amid speculation the Bank of Japan plans to change its asset-purchase strategy. The reversal is spurring concern the second-largest debt market is the vanguard for a broader selloff. DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said investors should prepare for bonds to fall.