Analysis: High supply of bonds expected in the upcoming month to gauge market resilience as expectations of interest rate cuts diminish.

Reported 4 months ago

The article discusses how global bond markets are facing the largest amount of net sovereign issuance so far this year in June, totaling $340 billion for the US, euro zone, and Britain, which could test investors' appetite for debt as rate cut expectations diminish. The increase in bond supply comes as central banks reduce their holdings and economic data suggests a delay in interest rate cuts. Analysts warn that the supply could push yields higher, potentially unsettling investors looking for a bond market rally. Despite strong investor demand for bonds, concerns remain about the long-term rise in global debt levels.

Source: YAHOO

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