Skip to content
Subscriber Only
Markets
Economics

Bond Market Meltdown Deconstructed: Five Charts That Explain Why

Some extreme positioning and some major changes
Video player cover image

There’s Life in the Old Bond Dog Yet: Gartside

More than $450 billion has been wiped out across global bond markets in the past few weeks and, for many people, there doesn't seem to be any particular reason why.

Sovereign-bonds yields had fallen so far that in order for them to make sense, investors would have needed to see persistent deflation and European recessions. For a while, that seemed like a real possibility, as oil went from more than $100 a barrel to less than $50 and many forecasters were predicting $30. Well, that didn't happen, and oil started to rise at the same time as evidence of incipient inflation and economic growth in Europe.