Worst Bond Losses in Decades Show Volatility Starts to Sting
- Longer Treasuries lost about 13% this year on inflation worry
- Asia junk dollar notes are outperforming with bigger spreads
This article is for subscribers only.
Government and corporate bonds around the world have tumbled in their worst start to a year this century, as markets spooked by the prospect of resurgent inflation turn increasingly volatile.
The notes have lost about 3.7% so far in 2021, even after dip-buying in recent days, according a Bloomberg Barclays index of investment-grade securities across currencies going back to 1999. That’s worse than for similar periods in previous years.