WS #15207
US bond markets are in distress, recording their worst quarterly performance since 1994 as yields climb and inflation remains sticky. JPMorgan reports record rotation into long-end Treasury ETFs, signaling a defensive flight from duration. With UK 10-year yields hitting 6% and German inflation accelerating to 3.3%, the market is pricing in continued rate hikes, dampening the outlook for rate-sensitive growth sectors and REITs.
Bond Market Crisis and Rate Hike Fears
US bond markets are in distress, recording their worst quarterly performance since 1994 as yields climb and inflation remains sticky. JPMorgan reports record rotation into long-end Treasury ETFs, signaling a defensive flight from duration. With UK 10-year yields hitting 6% and German inflation accelerating to 3.3%, the market is pricing in continued rate hikes, dampening the outlook for rate-sensitive growth sectors and REITs.