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Bond market rout continues, losses hit USD 1.2 trillion in last three months


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FXStreet (Mumbai) – The government bond prices across the globe continue to tank, sending yields higher, leading to a cumulative loss of more than USD 1 trillion in last three months.

The bond rout is spearheaded by the German Bunds. The yield on the 10-year German Bund rose above 1% on Wednesday. At the moment, the yield is trading 3.4 basis points higher at 1.025%. A similar move is seen in French, Italian, and Spanish yields since March – after ECB begun its QE program.


In Asia, the picture is similar to the one seen in the Eurozone. Yields have jumped by 175 basis points in Indonesia, 160 in South Africa, 150 in Turkey, 130 in Mexico, and 80 in Australia in the last three months.


In the US too, the Treasury prices have taken a beating. The 10-year US Treasury yield, the global bond market benchmark – has jumped 48 points to 2.47% in last eight trading sessions. The 10-year treasury yield currently trades at 2.487%, up 1 basis points.