Bond rates showed that most major investors in the U.S. economy believe that the Federal Reserve will raise interest rates in December. In what one analyst described as a “bloodbath,” 10 year U.S. and euro zone bond yields were seen increasing to the highest point that they had seen since May of 2016. In England, British yields pointed to the biggest one month gain that’s been seen in more than seven years, and showed no signs of a quick reverse.
The shift to treasury bond purchases away from stocks will likely continue on a gradual basis until a final decision about rates is released in December, granted that the fundamental information keeps the same tone.
The corollary to this is that stock prices around the world have begun to drop sharply as a result of this. Read more “Bond Sales Begin to Surge”