As SocGen’s Andrew Lapthorne reminds us, the big moves last week were in the bond markets, with numerous bond yields hitting historical lows and many moving further into negative territory. This, he adds, “is no longer yield chasing but a combination of price momentum, economic fear and structural issues.”
This is a big problem for savers and anyone else reliant on fixed income for the simple reason that there no longer is such a thing as fixed income.
But there are worse news for long-term investors according to Lapthorne. Much worse.