U.S. government bond investors hurting after the biggest annual decline in the history of the asset class are riding out yet another selloff
Heavyweights such as Amundi, Vanguard and BlackRock turned bullish on bonds in recent weeks, on expectations that inflation has peaked and that a potential recession next year could push the Federal Reserve to end its most aggressive rate hiking cycle in decades. Many investors have followed suit. December’s BofA Global Research survey showed fund managers were the most overweight bonds versus stocks in nearly 14 years.
“The market seemed to have been getting ahead of itself expecting a pivot to occur from the Fed,” said Michael Reynolds, vice president of investment strategy at Glenmede. “It is coming to terms with the fact that the Fed is going to have to be tighter for longer, until they’re really sure that they’ve got inflation back under control.”
Several global and domestic developments are complicating the case for lower yields. China’s rollback of stringent COVID-19 policies may support global growth and mitigate a widely expected recession. It also threatens to push inflation higher. Investors are getting set for a rush of data next week, including minutes from the Fed’s latest meeting on Wednesday and the U.S. employment report for December on Friday.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Opinion | Resolution for 2023: Let’s exercise civility and common decencyWe inhabit a world where anonymity has clout and mob mentalities prevail. Society is bursting due to self-isolation, stifled voices and fear of death.
Read more »
Nova Scotia’s regulator approves $164-million in Maritime Link costs for 2023Nova Scotia ratepayers will foot a $163.7-million bill in 2023 to finance, operate and maintain the undersea cable that feeds the province electricity from Newfoundland and Labrador
Read more »
Bushplane introduces 'exciting' new programs for 2023Supported by Ontario Trillium Foundation, Canadian Bushplane Heritage Centre will have new programs and activities for toddlers, youth and adults aged 55 and older beginning January
Read more »
Special betting: Which hospital will welcome B.C.'s first baby of 2023?The race is on B.C.! 🍼
Read more »
The 13 most exciting European hotels opening in 2023Europe is already winning the race to bring tourism back to pre\u002Dpandemic levels, and with a full slate of luxurious new hotels on the horizon, 2023 is looking…
Read more »