NewsHK
Rising government deficits and a rate environment that has turned against existing holders have pushed the bond market into a broad sell-off, unsettling fixed-income investors who are simultaneously contending with persistent inflation.
The pressure is arriving from multiple directions. Against that backdrop, the question is not whether to react but how to stay positioned for income without misreading the near-term price signal for a structural break.
The mechanics behind the sell-off Government debt is rising sector-wide.
Deficits are widening, which means more supply is arriving into the market at the same time that higher interest rates are making demand for existing paper fragile.
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