After a bad year for bonds, investors lose faith in a turnaround
Mint Bangalore|December 30, 2024
Wall Street investors entered each of the past two years brimming with optimism about U.S. Treasurys and other types of high-quality debt. Each time, they were disappointed.
Sam Goldfarb

All Street investors entered each of the past two years brimming with optimism about U.S. Treasurys and other types of high-quality debt. Each time, they were disappointed.

Now, they are far more guarded. In recent weeks, money managers have been dumping Treasurys, while savers have been rushing out of longer-term bond funds.

All that selling has pushed Treasury yields to the upper end of their two-year range. Still, investors remain worried that a tough environment for bonds could get even worse if President-elect Donald Trump pursues inflationary policies such as new tariffs. Many are debating whether hiding out in short-term T-bills could again be the smarter play.

"Cash is yielding 4-plus percent," said Ed Al-Hussainy, global interest-rate strategist at Columbia Threadneedle Investments. "That's a pretty tough bogey to beat."

Such doubts represent a big shift on Wall Street.

Just a few years ago, bonds were enjoying a decadeslong bull run and investors hardly feared higher rates. They generally assumed rates couldn't rise much above zero without triggering a recession.

When the Federal Reserve raised rates aggressively in 2022, most investors still believed it was only a passing phase. Through 2023, they consistently bet on a quicker and sharper turn to lower rates than the Fed itself was forecasting.

Diese Geschichte stammt aus der December 30, 2024-Ausgabe von Mint Bangalore.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der December 30, 2024-Ausgabe von Mint Bangalore.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS MINT BANGALOREAlle anzeigen
Mint Bangalore

States' Q4 borrowing to rise 18% after Q2 growth slump

Capex boost likely as West Bengal, Maharashtra, Karnataka lead ₹4.73 tn borrowing plan

time-read
3 Minuten  |
January 04, 2025
Mint Bangalore

Cold wave in North India to boost wheat, mustard crops

The drop in temperature does not bode well for crops like chickpea and potatoes in the plains

time-read
2 Minuten  |
January 04, 2025
Mint Bangalore

Govt cuts gas allocation for LPG, diverts to city retailers

The government has slashed allocation of natural gas used for liquefied petroleum gas (LPG) production, and diverted the low-priced fuel to city gas retailers like Indraprastha Gas Ltd and Adani-Total Gas Ltd to meet part of their requirement for compressed natural gas (CNG)/piped cooking gas supplies, said an official order.

time-read
1 min  |
January 04, 2025
Mint Bangalore

Rupee closes at new record low vs dollar

Reports of the central bank selling US dollars supported the rupee at lower levels, traders said

time-read
1 min  |
January 04, 2025
Mint Bangalore

Existing EV subsidies to stay, no new incentives

Commerce minister Piyush Goyal said on Friday existing subsidies for the electric vehicle (EV) ecosystem will continue for some time, citing broad consensus among the government, auto OEMs, and battery swapping companies that no new incentives or subsidies are required at this stage.

time-read
1 min  |
January 04, 2025
Mint Bangalore

Pharma Teachers Faking Profiles to Be Blacklisted

Pharmacy Council of India Identified 45,355 Cases of Duplicate Profiles on Digi-Pharmed Portal Using Same Aadhaar and PAN

time-read
1 min  |
January 04, 2025
Mint Bangalore

India's market cap share globally dips from record highs

India's share in global market capitalization dipped to 4.2% in December from its August peak of 4.6%, as global equity markets faced turbulence, showed an analysis by Motilal Oswal Financial Services Ltd.

time-read
1 min  |
January 04, 2025
Mint Bangalore

PM E-Drive e-bus subsidy to be rolled out from March

Govt to initiate bidding process after working out demand via state, city transport utilities

time-read
2 Minuten  |
January 04, 2025
Mint Bangalore

PNG, CNG Consumers to Get Uniform Insurance Cover

Although CNG Users Report More Accidents, Instances of Pipeline Leaks at PNG Households Were Reported

time-read
2 Minuten  |
January 04, 2025
Mint Bangalore

Biden to Block Sale of US Steel to Nippon

President Joe Biden has decided to block the sale of United States Steel Corp. to Japan's Nippon Steel Corp., according to three people with knowledge of the matter, ending a $14.1 billion deal that has faced months of vocal opposition and raising questions over the future of a US industrial giant.

time-read
1 min  |
January 04, 2025