The US bond market has suffered a fierce sell-off as investors fret that central banks will move more aggressively than anticipated to end their crisis-era economic stimulus programmes, with some high-profile debt investors declaring a new era for fixed income.
The yield of 10-year Treasuries on Wednesday approached levels not seen since the “Trumpflation” retreat nearly a year ago, hitting a nine-month high of nearly 2.6 per cent on expectations cash freed up by the recent US tax cut will finally help spark higher inflation driven by stonger economic growth.
An eagerly anticipated auction of 10-year US Treasuries later produced the highest ratio of demand since 2016, underscoring how higher yields can entice investors back into the nond market. That helped trim the yield rise to 2.57 per cent by early afternoon.
The global government bond market has started 2018 on the back foot, and yields rose sharply on Tuesday after data showed the Bank of Japan slowed some of its long-dated bond purchases. That stoked speculation that the Bank of Japan would join the European Central Bank and US Federal Reserve in scaling back stimulus programmes this year.
全球政府债券市场在2018年开局不利，周二收益率大幅上升，因为数据显示，日本央行(Bank of Japan)放缓了一部分长期债券购买操作。这引发人们猜测日本央行今年将加入欧洲央行(ECB)和美联储(Federal Reserve)的行列，开始缩减刺激计划。
The sell-off deepened on Wednesday amid market speculation that Chinese authorities viewed US government bonds as less attractive. The sense that the three-decade bond bull market was coming to a close was reinforced by Bill Gross, the so-called bond king, who publicly declared he had shorted US Treasuries.
Jeffrey Gundlach, the founder of DoubleLine Capital who is viewed as Mr Gross’s rival and is a closely followed bond investor, lent his weight to the bearish sentiment, saying central bank policy was shifting to an “era of quantitative tightening”.
Doubleline Capital创始人杰弗里?冈拉克(Jeffrey Gundlach)是另一位受到紧密追随的债券投资者，被视为格罗斯的竞争对手。他表态赞同看空情绪，称央行政策正在转向“量化收紧时代”。
While the Japanese central bank’s trimming of long-dated bond purchases was not announced as an official change of policy, it was enough to reinforce the sense 2018 will become a turning point in the post-crisis era of ultra-stimulative monetary policy.