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Increased risk aversion is the most-cited immediate explanation. According to this interpretation, the recent pickup in market volatility, together with two notable air pockets for stocks this year, is pushing investors out of stocks and to safe assets. Treasuries are the greatest beneficiaries of this flight to quality, which is a particularly important warning indicator for high-risk market segments that lack a sufficient depth of investor support.

Another explanation is that #bondmarkets are anticipating a notable slowdown in the U.S. economy. Others point to the failure of inflation to rise in a sustainable fashion, even as the economy continues its robust performance and unemployment is historically low.


#BondMarket #DebtMarket #BondTrading #FinancialMarkets #BondYield #BondPrices #FixedIncome #Bonds #GovernmentBonds #SovereignBonds #SovereignDebt #Bonds #GovernmentDebt
Why 10-Year #TreasuryYields Defy Conventional Wisdom
https://www.bloomberg.com/view/articles/2018-03-29/why-10-year-treasury-yields-continue-to-defy-conventional-wisdom
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The 2-month rally in euro-area sovereign bonds shows no sign of abating. #Governmentdebt supply next month is set to be dwarfed by the more-than 100bn euros ($123bn) of bonds to be repaid, according to Bloomberg calculations. Aside from the potential support from redemptions, German securities will benefit amid reinvestments from the ECB’s public sector purchase program, according to Morgan Stanley. BNP Paribas SA says that it is too early to bet against the rally in bunds.

#Europeanbonds have rallied amid a confluence of factors, including a selloff in stocks, the prospect of a global trade war and signs of a slowing euro-area economy. The ECB is yet to announce an end date for its quantitative easing, or give guidance on the timing of the first deposit rate increase since 2011. Money markets have pushed back expectations for a rate hike to mid-2019, from March just two weeks ago.


#BondMarket #DebtMarket #BondTrading #FinancialMarkets #BondYield #BondPrices #FixedIncome #Bonds #GovernmentBonds #SovereignBonds #SovereignDebt #Europe
Europe's Bond Rally Set to Extend Into April on Debt Repayments
https://www.bloomberg.com/news/articles/2018-03-26/europe-s-bond-rally-set-to-extend-into-april-on-debt-repayments
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Fund managers have sliced their #bond allocations to the lowest level in 20 years as fears grow that the sector poses the biggest threat to markets. Fears of a breakdown in the bond market did not push investors to stocks. The portfolio level dedicated to equities fell to a net 43% overweight, a 12% drop that was the biggest move in two years. Cash balances rose three-tenths from January to 4.7%.


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Investors cut bond market allocation to 20-year low amid fears of a 'crash'
https://www.cnbc.com/2018/02/13/investors-cut-bond-market-allocation-to-20-year-low-amid-fears-of-a-crash.html
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The 10-year #Treasuryyield clawed its way back to a new four-year high Monday (Feb 12) after an equity sell-off that it helped cause sent its rate back down last week. The yield on the benchmark 10-year #Treasurynote was slightly higher at 2.860%, while the yield on the 30-year Treasury bond also ticked up to 3.146 percent. Bond yields move inversely to prices. Earlier Monday, the 10-year Treasury yield rose to 2.902%, its highest level in more than four years as concerns over inflation continued. The 30-year bond yield rose to its highest level since March 14, when the bond yielded as high as 3.215%.


#BondMarket #DebtMarket #BondTrading #FinancialMarkets #BondYield #BondPrices #FixedIncome #Bonds #GovernmentBonds #SovereignBonds #GovernmentDebt
US 10-year #Treasury yield rebounds, hits 4-year high above 2.9%
https://www.cnbc.com/2018/02/12/us-treasury-yields-rise-to-a-new-4-year-high-as-inflation-concerns-drag-on.html
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Billionaire hedge-fund manager #RayDalio said that the bond market has slipped into a bear phase and warned that a rise in yields could spark the biggest crisis for fixed-income investors in almost 40 years. A Treasury selloff extended following Dalio’s comments, pushing 10-year yields through 2.65%, near the highest since mid-2014. The current economic environment is good for stocks but bad for bond investors, said Dalio, who’s chairman of Bridgewater, the world’s biggest hedge fund.


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Dalio Says Bonds Face Biggest Bear Market in Almost 40 Years
https://www.bloomberg.com/news/articles/2018-01-24/billionaire-dalio-says-bond-market-has-moved-into-bear-phase
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#Spain’s borrowing costs fell to 6-week lows and short-dated #bondyields in #Greece tumbled on Monday (Jan 22), after ratings upgrades for the 2 southern euro zone states provided further evidence of a turnaround for the bloc’s peripheral economies.

Fitch upgraded Spain’s credit rating to 'A-' with a stable outlook late on Friday, citing a broad-based economic recovery and limited impact on the economy from Catalonia’s independence bid. It was Spain’s first 'A' rating from one of the top three ratings agencies since the euro zone debt crisis. S&P Global Ratings, releasing its review on Greece after Friday’s market close, lifted Greek long-term, foreign currency ratings for the first time in 2 years on improvements in the finances and fiscal outlook for the debt-laden nation .


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UPDATE 3-Spanish, Greek bonds shine after ratings upgrades
https://www.reuters.com/article/eurozone-bonds/update-3-spanish-greek-bonds-shine-after-ratings-upgrades-idUSL8N1PH1F1
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#Spain drew record orders for its biggest syndicated offering since 2014, with bids reaching more than four times the amount offered. Orders for the 10-year notes totaled more than 43bn euros ($52.7bn), compared with the 10bn euros on offer, reflecting investor confidence in the once-beleaguered economy and strong demand this year for #sovereigndebt in the single currency.

Investors have flocked to Spanish debt this year - cutting the yield premium for 10-year notes to a post-euro crisis low versus similar German bunds - because of buoyant growth, a Fitch Ratings upgrade last week and easing tensions in Catalonia. The order flurry also mirrors similar demand for recent sales by countries including Italy, Macedonia and Portugal.


#BondMarket #DebtMarket #BondTrading #FinancialMarkets #BondYield #BondPrices #FixedIncome #Bonds #GovernmentBonds #SovereignBonds #GovernmentDebt #CreditRatings
Spain's Biggest Bond Sale in Four Years Draws Record Orders
https://www.bloomberg.com/news/articles/2018-01-23/spain-bonds-join-order-torrent-with-45-billion-euros-of-demand
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