Black Monday in the bond market points to pain ahead
The biggest fall in short-term bond yields since the 1987 crash is sending investors and central bankers a clear message about what’s to come in the wake of the SVB collapse.
The extraordinary price action on global markets is proof the collapse of Silicon Valley Bank is likely to reverberate for months to come, as investors find themselves caught between the need for central banks to continue their year-long battle against inflation, and growing worries that an overly leveraged financial system has become unstable.
James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
