Global bonds surge toward best month since 2008 financial crisis | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Global bonds surge toward best month since 2008 financial crisis

World+Biz

Bloomberg
29 November, 2023, 01:25 pm
Last modified: 29 November, 2023, 01:29 pm

Related News

  • RMG net exports rise to 61% in Oct-Dec, highest in 4 quarters
  • Task force proposes infrastructure bonds for sustainable development
  • Khulna sees surge of 24,860 voters
  • Star Adhesives gets approval to issue Tk50cr convertible bond
  • Labour win brings few hopes or fears to London's financial district

Global bonds surge toward best month since 2008 financial crisis

There’s still some tension between the views of credit investors and rates traders, whose forecast of rapid Fed rate cuts seem to require a significantly harder economic landing. 

Bloomberg
29 November, 2023, 01:25 pm
Last modified: 29 November, 2023, 01:29 pm
Photo: Bloomberg
Photo: Bloomberg

A Bloomberg gauge of global sovereign and corporate debt has returned 4.9% in November, heading for the biggest monthly gain since it surged 6.2% in the depths of the recession in December 2008.

November's rally is being driven by increasing speculation the Federal Reserve and its global peers have largely finished hiking interest rates and will start cutting next year. Fed Governor Christopher Waller helped bolster that view Tuesday, when he said the current level of policy looks well positioned to slow the economy and bring down inflation.

"Waller has been a hawkish tilting member, so for him to sound dovish has been significant," said James Wilson, a senior portfolio manager at Jamieson Coote Bonds Pty in Melbourne. "It sounds like the Fed is all but done in their hiking cycle."

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Treasuries extended this month's gains Wednesday. US 10-year yields slid six basis points to 4.26%, while two-year yields dropped seven basis points to 4.67%. Australian bonds surged, sending 10-year yields tumbling 14 basis points, after weaker-than-expected local inflation data spurred traders to start betting policymakers are done hiking. 

Volatile Year

The current rally is just the latest turnaround in a volatile year for bonds. The securities powered ahead in January before whipsawing over the next six months, and then starting a three-month slide from August. The Bloomberg Global Aggregate Total Return index was down as much as 3.8% for the year by the time it bottomed in mid-October. The gauge is now up 1.4% for 2023.

"The Fed is providing parameters for the potential of looser policy," said Gregory Faranello, head of US rates trading and strategy for AmeriVet Securities in New York. 

The last month that saw a stronger rally than the current one was December 2008 when the Fed cut rates to the zero bound and pledged to boost lending to the financial sector following the collapse of Lehman Brothers Holdings Inc. Bloomberg's global debt index jumped 6.2% that month.

The current dovish shift in central-bank expectations has been a boon for corporate bonds. Spreads on investment-grade global company debt are hovering around the lowest levels since April 2022, according to a Bloomberg index. They have narrowed over the past month as investors rushed to snap up the securities amid increased optimism about a soft landing for the US economy.

The average yield on corporate bonds retreated to about 5.3% this week after climbing to almost 6% in October, the highest since 2009, data compiled by Bloomberg show.

Diverging Views

There's still some tension between the views of credit investors and rates traders, whose forecast of rapid Fed rate cuts seem to require a significantly harder economic landing. 

Swaps contracts currently anticipate a full percentage point of Fed easing by the end of 2024. US policy makers officials in their most recent forecasts in September anticipated hiking rates once more this year — which they haven't done so far — and cutting rates by half a percentage point in 2024. They will update those forecasts at their Dec. 12-13 meeting.

USA

bonds / surge / Financial crisis

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    No desire to be part of next elected govt: CA Yunus
  • File photo of BNP Standing Committee Member Amir Khasru Mahmud Chowdhury. Photo: Collected
    Khasru flies to London to join Yunus-Tarique meeting
  • News of The Day, 11 JUNE 2025
    News of The Day, 11 JUNE 2025

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • File photo of ex-prime minister Sheikh Hasina and her son Sajeeb Wazed Joy. Photo: Collected
    Joy spends Eid with Hasina in India: Indian media
  • Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
    Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook

Related News

  • RMG net exports rise to 61% in Oct-Dec, highest in 4 quarters
  • Task force proposes infrastructure bonds for sustainable development
  • Khulna sees surge of 24,860 voters
  • Star Adhesives gets approval to issue Tk50cr convertible bond
  • Labour win brings few hopes or fears to London's financial district

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

2h | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

1d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh

More Videos from TBS

News of The Day, 11 JUNE 2025

News of The Day, 11 JUNE 2025

1h | TBS News of the day
WB predicts worst decade for global growth since 60s

WB predicts worst decade for global growth since 60s

2h | TBS Stories
Foreign firm to draft merger plan for investment promotion agencies

Foreign firm to draft merger plan for investment promotion agencies

3h | TBS Insight
US-China London meeting ends as planned

US-China London meeting ends as planned

4h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net