Intense Scrutiny on Long Bonds Amid Fiscal Concerns

Reported about 14 hours ago

Long bonds are again in the spotlight as investors react to fiscal spending uncertainties. Recent market volatility was highlighted by rising yields in UK gilt markets due to speculation about the Chancellor's future, triggering a similar uptick in US Treasury yields. Concerns over rising government deficits and political risks have made ultra-long bonds particularly vulnerable. Although some countries are reconsidering their long-term bond issuance levels to mitigate selling pressures, market experts caution against the inherent instability of this segment, suggesting investors prefer shorter-term securities amidst escalating political and fiscal risks.

Source: YAHOO

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