Global Bond Market Breakdown Hits 'Tantrum' Territory
Callum Thomas | Jul 16, 2017 12:31AM ET
After the big reflation reset in positioning, global bond markets are showing more signs of breaking down. We previously talked in detail about the idea of the reflation reset in the context of a decent global growth and inflation outlook which would likely set the scene for Eurozone , and this is allowing central banks to pull back on easing e.g. the ECB will be tapering, the BoJ has conducted a kind of stealth taper, and the Fed is already hiking and about to kick off balance sheet normalization, and the Bank of Canada has also joined on the rate hiking front. So with technicals lighting up and fundamental catalysts the conclusion holds.
Global sovereign bond market breadth has broken down again into "tantrum" territory.
The US broke first, and now Germany, while Japan and the UK look close to seeing their 10-year government bond yields break through the downtrend lines too.
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