Much hullabaloo about nothing
Treasury securities underpin the financial system. But, despite the biggest bond losses ever, the financial system is robust.
It's been a wild couple of years for bond investors. They've had to fight central banks, who, to tame inflation, have been hiking rates like mad. But these rate hikes also pushed up government bond yields, which have cut prices. As a result, fixed-income investors are sitting on enormous unrealised losses. Yet, despite the…