The worst bond rout in decades is drawing more investors to government debt.
“The U.S. Treasury Bond market is rallying,” DoubleLine Capital CEO Jeffrey Gundlach said.
Bonds and stocks are tumbling as the Fed leads central banks in a shift away from monetary policies of the pandemic.
Gundlach believes a 75-basis-point September rate hike is the most likely scenario.
Bloomberg's Global Aggregate Total Return Index has fallen 20% from its 2021 peak, its biggest drop since 1990.
It's a particularly difficult environment for investors, with bonds and stocks sinking in tandem this year.
Central bankers have signaled they will increase rates as much as necessary to stave off inflation.
Yields on U.S. two-year notes have climbed above those on five-year securities by the most since 2007.
Inversions of the yield curve signal an expectation that slowing growth will eventually necessitate lower short-term rates.
Benchmark yields slumped across the curve.
Please log back in before proceeding.
There was an error logging in. Please try again.
Congrats! You are now logged in. Your exam is being submitted.
