Rate-Cut Euphoria Puts Global Bonds on Course to Erase 2023 Loss
- Bloomberg Global Agg Index jumped most since March on Tuesday
- Some cuts priced in for next year may be premature: Fidelity
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Global bonds have been such a kicking post in recent months that it may come as something of a surprise they are just a fraction away from erasing this year’s loss.
The Bloomberg Global Aggregate Bond Index jumped 1.3% Tuesday, the biggest one-day gain since March, following weaker-than-expected US inflation data. The gauge, which was down by as much as 3.8% for the year less than a month ago amid the higher-for-longer narrative, is now just 0.3% lower for 2023.