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Global Bonds Are on Cusp of Bear Market as Fed Faces Reckoning

  • Bloomberg Global Aggregate Index has dropped 19.7% since peak
  • Fed under pressure to step up rate hikes to combat inflation
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What to Expect From the Fed Meeting

Global bonds are on the cusp of entering a bear market after the fastest US inflation in four decades fueled bets the Federal Reserve will make its biggest interest-rate hike since 1994 this week.      

The Bloomberg Global Aggregate Index, which tracks total returns from investment-grade government and corporate bonds, has slumped 19.7% from a record high in January 2021.