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Global Bonds Tumble Into Their First Bear Market in a Generation

  • Bloomberg bond index drops 20% from its January 2021 peak
  • A new environment as bonds fall with stocks: Schroders’ Wood
Bloomberg business news
WATCH: Bonds have slumped into their first bear market in a generation. Paul Dobson reports.Source: Bloomberg
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Under pressure from central bankers determined to quash inflation even at the cost of a recession, global bonds slumped into their first bear market in a generation.

The Bloomberg Global Aggregate Total Return Index of government and investment-grade corporate bonds has fallen more than 20% from its 2021 peak on an unhedged basis, the biggest drawdown since its inception in 1990. Officials from the US to Europe have hammered home the importance of tighter monetary policy in recent days, building on the hawkish message from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium.