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This year could be the worst for bond investors since 1999, says the Financial Times. The Barclays Global Bond Index, which measures $68 trillion worth of government and corporate debt, has so far this year posted a negative 4.8% return.
This is mainly due to active selling of government bonds by investors due to rising inflation, notes FT.
For 40 years, the bond market has largely risen: the year-end decline has been relatively infrequent, the FT noted. In 1999 the market fell by 5.2% as investors dumped bonds to buy shares in fast-growing IT companies. Long-term bond yields now show that some investors don't want to get rid of them, because they assume that too drastic monetary tightening will hamper economic development and provoke a sell-off in stocks.
One of the best investments at the end of 2021 was high-end aged champagne. Some types outperformed leading IT companies and Bitcoin, gaining more than 80% in value, Reuters and the FT wrote.
source: ft.com
This is mainly due to active selling of government bonds by investors due to rising inflation, notes FT.
For 40 years, the bond market has largely risen: the year-end decline has been relatively infrequent, the FT noted. In 1999 the market fell by 5.2% as investors dumped bonds to buy shares in fast-growing IT companies. Long-term bond yields now show that some investors don't want to get rid of them, because they assume that too drastic monetary tightening will hamper economic development and provoke a sell-off in stocks.
One of the best investments at the end of 2021 was high-end aged champagne. Some types outperformed leading IT companies and Bitcoin, gaining more than 80% in value, Reuters and the FT wrote.
source: ft.com