A global sell-off in bonds and equities deepened on Friday after a week punctured by the US Federal Reserve and Bank of England both warning that interest rates may move higher again this year amid spiralling wage and energy prices.
The central bankers’ warnings and a stronger-than-expected US jobs report sent benchmark US 10-year treasury yields within 2 basis points of their highest level since 2007 at 4.51 per cent, as bond investors demand more compensation for the present value of money.
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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com
