Is this the man responsible for latest bond sell-off?

clock

The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.

Benchmark US treasury yields have spiked again in recent days as the Federal Reserve's pivotal 18-19 September policy meeting draws closer. Yields on 10-year debt rose to a two-year high of almost 2.9% on Monday, in anticipation of the Fed announcing a slowdown in its QE programme at the September meeting. That continued a sell-off that has seen 10-year yields rise 70 basis points since mid-June, with yields on gilts and other safe haven debt also moving higher. Ten-year yields rose by some 28bps last week alone, despite the relative absence of significant economic data points. ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

FIF25: House of Lords member calls for stronger international economic cooperation

FIF25: House of Lords member calls for stronger international economic cooperation

Economics often a driver of geopolitical instability

Sorin Dojan
clock 04 June 2025 • 2 min read
Woodford sets date for portfolio platform launch

Woodford sets date for portfolio platform launch

W4.0 will launch on Friday 6 June

Cristian Angeloni
clock 03 June 2025 • 1 min read
FCA seeks feedback on stablecoin and crypto policy proposals

FCA seeks feedback on stablecoin and crypto policy proposals

Feedback deadline set at 31 July

Patrick Brusnahan
clock 29 May 2025 • 1 min read