Post by
mouserman on Oct 30, 2023 9:08am
Bond markets not making headlines
The Globe and Mail reports in its Saturday edition that consider this a reminder that you are living through one of the worst bond market crashes in history. The Globe's Tim Shufelt writes that, unlike news from stock markets, coverage of the bond market does not kick off any nightly newscasts. Three years in, and nobody seems to be freaking out. Stock prices have dipped over the past few months, but the S&P 500 index is still up by 8 per cent on the year. Volatility indicators have been fairly contained. Turmoil in bondland affects pretty much everyone, eventually. This past week saw the U.S. debt market hit a threshold that would have seemed far-fetched just a couple of years ago. The yield on 10-year U.S. Treasuries pushed through the 5-per-cent mark momentarily on Monday. That has not happened since 2007. U.S. bond yields help establish pricing on loans and securities around the world. A sharp rise in yields has a great dampening effect that permeates the global economy. The BMO Long Federal Bond Index ETF has lost 45 per cent. "I promise you, if the equity market lost anything like that, you would hear about it," said Ian Pollick, head of fixed income, currency and commodities strategy at CIBC.
Comment by
baranja on Oct 30, 2023 9:13am
It is almost unral here. I wonder, will it be ever possible for this to go back to $9, any take on this? Or this is now permanently stuck bellow $7ish
Comment by
baranja on Oct 30, 2023 9:13am
...unreal.. 25% Div. what can go wroing here?
Comment by
bikipal on Oct 30, 2023 10:47am
Depends on the NAV. Pretty sure if nav recovered to ~$7 or above the ~25-30% premium will probably be back.
Comment by
NoShoesNoShirt on Oct 30, 2023 11:26am
Bond market not making headlines because the crash was expected for years. The crash arrived 10 years later than I expected.