France’s Bond Crisis Deepens
Investors are heading for the exit as France's bond crisis deepens and political gridlock sets in. Georgia Hall explains. (Source: Bloomberg)
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Investors are heading for the exit as France's bond crisis deepens and political gridlock sets in. Georgia Hall explains. (Source: Bloomberg)
French government bonds deepened this week’s slump, with investors demanding the biggest yield premium to hold the bonds over safer German debt since the region’s debt crisis. Huw van Steenis, Partner at Apollo, discusses this as well as the overall European economic outlook. (Source: Bloomberg)
France’s bond market is heading into a period of heightened volatility as political uncertainty collides with deteriorating public finances, according to Nicolas Forest, chief investment officer at Candriam.
As global government bonds wrapped up their worst quarter since 2024 due to higher oil prices and the threat of sticky inflation for the world economy, France is facing a particularly tricky trajectory. OAT-Bund spreads widened sharply as an increasingly fragmented government unveiled plans to narrow the nation's budget deficit, stoking investor concern over the country’s debts. The Opening Trade spoke to guests about the economic outlook and investment landscape for France as the nation grapples with growing global and domestic pressures on it's finances. (Source: Bloomberg)
US Treasuries rebounded from a global bond selloff as pressure in European markets fueled demand for haven assets, pulling 10-year yields down from a 24-year high. Bloomberg's Ruth Carson reports. (Source: Bloomberg)
US state and local government debt posted its worst month in nearly two decades after inflation concerns, fueled by the ongoing US-Iran conflict, and fears of interest-rate hikes triggered a widespread bond selloff.
Paramount Skydance Corp.’s $41 billion of US dollar bonds to finance its takeover of Warner Bros. Discovery Inc. sold off to start their first full day of trading.
A move higher in oil is putting even more pressure on bonds, with yields hitting new milestones in a number of markets including the UK and the US. The UK’s long-term borrowing costs hit 6% for the first time in almost three decades whilst the 10-year Treasury note climbed to the highest since 2002. It comes as government debt has been flailing around the world as uncertainty — tied to the war in the Middle East — ripples through the global economy, pushing investors to bet central banks will further raise interest rates. But bond veteran Jim Bianco, President and Founder of Bianco Research, is bullish on US sovereign debt on the basis of value generation. He discusses the reasoning behind his position with Caroline Hepker and Nathan Hager. (Source: Bloomberg)
One of Europe’s most popular interest-rate wagers in recent years took a fresh hit last month as the latest spike in global energy prices drove a surge in short-term bond yields.
Countries that moved fast to tackle this year’s inflation spike are finding favor with bond investors, while those that delayed may end up paying the price in higher rates.
Matthew Miskin, co-chief investment strategist at Manulife JH Investments, says at the moment “every stock on the planet is loved, every bond on the planet is disliked,” and sees PCE data as a potential catalyst for bond investors to step back into the market. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
The buyers’ strike expands in bonds.
The French government will sell a record amount of bonds to investors next year as it faces a surge in Covid-era debt due for redemption and needing to be refinanced, the public debt management office said on Tuesday amid mounting concern about France's surging public deficit and borrowing rates.
Anders Persson, fixed income CIO at Nuveen, sees “sort of a toxic mix here that’s pushing yields higher and higher” and says his firm is moving more neutral at this point and is “not quite comfortable going long duration yet.” He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Gilts extended gains across the curve, with benchmark UK 10-year yields almost 7bps lower as oil and natural gas prices fell to new lows on the day. The moves followed reports that EU officials do not expect the US to ban diesel exports and that Qatar is holding meetings with the US and Iran over the conflict in the Middle East.
Jim Bianco says the Fed has made it clear it will stamp out inflation.
The global selloff in government bonds is "overdone" and a turn in the market is due, according to Mark Dowding, fixed income CIO at RBC BlueBay. Speaking on Bloomberg Television, he says the selloff was "not really justified" judging from data including inflation. (Source: Bloomberg)
Asian bonds looked set to track Treasuries lower as the US-Iran standoff kept oil prices elevated, adding to inflation concerns and bets on further Federal Reserve interest-rate hikes.
Traders are piling into options tied to fixed-income ETFs at a record pace, in a rush to position portfolios with yields on 10-year and 30-year Treasuries at the highest in two decades.
Man Group Chief Market Strategist Kristina Hooper warns that surging long-end Treasury yields threaten to topple the two pillars propping up US economic growth: AI capital expenditures and consumer spending. She speaks on "Bloomberg The Open." (Source: Bloomberg)
Merlin Entertainments Ltd.’s debt has tumbled amid investor concern that a recent £657 million ($871 million) refinancing fails to address the firm’s longer-term challenges.
For years, US stocks have faced relatively weak competition from bonds or Treasuries in investor portfolios. That period looks like it’s headed for a fast, and possibly painful, end, strategists at Wells Fargo say.
PureGym is seeking to raise £1.4 billion ($1.9 billion) from the high-yield bond market to refinance outstanding debt that may cut the gym operator’s borrowing costs.
Of all the factors buffeting Chile’s bond market at the moment, it’s the Federal Reserve and the outlook for further rate hikes in the world’s largest economy that are capturing the most attention.
Emerging-market investors from Aegon USA Investment Management to JPMorgan Asset Management are dialing back their riskiest bond bets as the deepening selloff in global credit markets threatens to derail a stellar run for debt in the developing world.
As yields on US Treasuries soar past one high after the next, a reality is sinking in deeper across Wall Street and Washington: More than merely a bond-market slump, this might just be a fundamental shift. Myriad forces have combined to push the government’s borrowing costs higher — from $100-a-barrel oil and the AI spending boom, to yawning US budget deficits adding to a record $40 trillion debt load — all against a backdrop of a Federal Reserve bent on cooling inflation that’s run well past target for years. The selling pressure intensified this week as energy prices surged anew and data showed US businesses are humming along, giving an already hawkish central bank more reasons to keep raising interest rates. For a closer look, we speak with Kelsey Berro, Fixed Income Portfolio Manager at JPMorgan Asset Management. (Source: Bloomberg)