The Multi-Asset Investor: Flash Note
Trade in Soda;
Following my recent note it has become clear that the long-end of the bond market is in trouble. In November, I had taken the view that the yield back at 2002 levels represented good value and would prove effective should the stockmarket turn down. That level was broken over the holidays and I reduced exposure yesterday. Unfortunately, it has sold off again today.
UK and US 30-Year Bond Yield since 2022
The bond market is now in territory not seen since the late 1990s, and bond yields no longer have an anchor. This has the potential to develop into a full-blown fiscal crisis as the cost of government borrowing surges.
UK 30-Year Bond Yield since 1996
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