Teachings from recent bond turbulence

At the start of the year, not many people would have predicted the volatility global bond markets have faced. Unprecedented trade tariffs, initiated by the US, have caused turbulence, but experts have highlighted credit markets as a potential way to reduce losses. Negative headlines have spooked investors. Markets have swung due to conflicting economic data, with ‘soft data’ showing weak sentiment and hard data displaying signs of strength. Similarly, April’s weak Treasury auction raised concerns regarding the demand for US assets, but results do not show a broader loss of confidence in Treasuries...