Check out this from overnight ... "If you thought you had already read the gloomiest possible prognosis for bonds, wait until you read this one."
The current bond market is facing the "perfect storm" of:
- potential steepening of the bond yield curve,
- monetary policy tightening,
- and a multi-year period of sustained losses due to a "structural" return of inflation resembling that of 1967
"By historical standards, this implies sustained double-digit losses on bond holdings, subpar growth in developed markets, and balance sheet risks for banking systems with a large home bias"
Bloomberg with the report here
And, if you want more, here is the original piece on the Bank of England "Underground" blog
Yikes. I need a cup of tea ....
