Global Bonds Suffer Worst Monthly Meltdown as $1.7 Trillion Lost

It has been over 30 years since 10 year Treasury yields peaked at 15.84% on September 30, 1981. The 10 year Treasury yield is now 2.406%. That is one heck of a bull market!
(Bloomberg) – The 30-year-old bull market in bonds looks to be ending with a bang.
The Bloomberg Barclays Global Aggregate Total Return Index lost 4 percent in November, the deepest slump since the gauge’s inception in 1990. Bonds in Europe extended declines with their U. S. peers as OPEC’s agreement on Wednesday to cut oil production added to prospects of higher inflation. The reflation trade has been driving markets since Donald Trump’s presidential election win due to promises of tax cuts and $1 trillion in infrastructure spending. All this has prompted investors to dump debt that was offering near-record-low yields and pile into stocks.

This post was published at Examiner on December 1, 2016.