, Columnist
Bond Traders Haven’t Hit Their Pain Threshold Yet
Fixed-income returns aren’t likely to improve any time soon. Borrowers should accelerate their issuance plans.
The bond market promises more pain to come.
Photographer: Minnesota Historical Society/Corbis HistoricalThis article is for subscribers only.
With the 10-year Treasury yield breaching 2% after this week’s higher-than-expected U.S. inflation numbers, bond traders are rightly feeling bruised and battered. The bad news is, there’s probably more pain in store in the fixed-income market. But the good news is that governments and companies are still able to benefit from borrowing costs that are way below their historical levels.