Global Bonds Slump to a Discount for First Time Since 2008
- Bloomberg gauge of debt drops below measure of par-value
- Hawkish Fed comments spark selloff in global bond markets
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A gauge of global bonds dropped below a key fixed-income watermark after Federal Reserve Governor Lael Brainard signaled a quicker-than-expected rundown of the central bank’s debt holdings.
The Bloomberg Global Aggregate Index fell below a measure of so-called par value Tuesday, with its price falling to 99.9 -- under the key 100 level at which bonds are often sold to investors. It’s the first time since 2008 that the gauge has traded at a discount to face value.