Lackluster Bonds

Over the past two and a half years, bond market movements, particularly in US Treasuries, have been marked by dramatic shifts. Since mid-September 2024, the yield on 10-year US Treasuries has surged by 60 basis points, resulting in the largest monthly loss for investors since the fall of 2023. This downturn in bond prices is not isolated to the US; it has spread globally, marking an unprecedented third consecutive year of negative total returns for international bond markets. Despite these struggles in the bond markets, equity prices are continuously hitting new highs, particularly in the US but also in many other markets worldwide, at least in terms of local currency.

Key Causes Behind the Bond Yield Rise