Skip to content
Subscriber Only

Global Bond Markets Go ‘Mad’ as Everything Rallies at Once

  • Austrian century bonds trounce junk in inverted yield era
  • Fed stokes ‘lowflation’ bets sweeping through markets
Video player cover image
Jason Trennert, chairman at Strategas, discusses the issues behind the move in global yields.Source: Bloomberg)

Whether you call it “Japanification,” a dash for safety or a bet on the Fed’s new normal, bond bulls are charging into some of the most notorious corners of developed debt markets.

As benchmark Treasury yields trade at December 2017 lows and those on German bunds sink deeper into negative territory, century bonds riddled with interest-rate risk are suddenly one of the market’s biggest outperformers. And the market value of the world’s investment-grade and high-yield bonds has jumped by almost $1.6 trillion to $55 trillion in the past three weeks, with the index racing toward record highs, according to Bloomberg data.