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The collapse of the global bond market .. the worst in 73 years • Al Marsad Newspaper

The global bond market crash continues, with no clear end to this crash, and with central banks around the world aggressively raising interest rates to counter inflation, bond prices are dropping sharply, with UK five-year bonds falling the most since 1992 After the government put forward a massive tax cut plan.

The two-year US Treasury bonds are also witnessing the longest consecutive losing streak since at least 1976, with their 12-day decline in a row.

Strategists at Bank of America Corp said government bond markets are on their way to their worst annual performance since 1949, when Europe was rebuilding itself after World War II.

The bond losses illustrate how big the difference is between the current monetary policies of the Federal Reserve and other central banks, and the policies pursued by the same banks in the period of the Corona epidemic, when they kept rates close to zero to maintain activity in their economies.

And the reversal in the monetary policy of central banks caused great pressure on everything, according to a report published by “Bloomberg” agency, which extended from stock prices to oil prices, due to investors’ preparation for a possible economic recession.

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