The sell-off starts? Bonds suffer fourth-worst month in 20 years

The Bank of America Merrill Lynch Global Bond Market Index fell 1.5% last month, its largest loss since April 2004, with 'safe haven' sovereign debt particularly affected. In the US, investors beginning to position for an eventual 'tapering' of quantitative easing pushed yields on 10-year treasuries from around 1.9% to as high as 2.2%, with benchmark debt losing 3.3% over the month as a whole. The UK market saw 10-year gilts shed 2.3% in sterling terms last month, as expectations of further QE in the near future declined, while concerns over 'Abenomics' saw Japanese 10-year yields rise ...