Counting the Benefits of a Treasury Selloff
Treasuries are set for their biggest tumble in 20 months, part of a global selloff that was sparked by investor concern that central banks are preparing to gradually reduce stimulus. U.S. securities have lost 1.2 percent this month, while bonds worldwide are down 3 percent, the most in almost six years, according to the Bloomberg Barclays Global Aggregate Index. Reports on manufacturing and hiring this week may fuel speculation that the U.S. is growing fast enough for the Federal Reserve to raise interest rates by year-end. Economists predict the central bank will keep policy unchanged on Nov. 2. Kleinwort Benson Bank CIO Mouhammed Choukeir discusses this and the outlook for Europe with Guy Johnson in London and Caroline Hyde in Berlin on "Bloomberg Markets: European Open."