Recovery Concerns Spook The Markets – Investing.com UK

Recovery Concerns Spook The Markets – Investing.com UK

Yesterday’s continued slide in bond yields, along with a sharp fall in stock markets, appears to be painting a narrative that the reflation trade is dead or dying.

The slide in yields this week appears to suggest that bond investors are becoming increasingly concerned about a sharp slowdown in global and US growth prospects, as well as diminishing inflation expectations.

As a consequence of the slide in yields the US 10-year hit a low of 1.25% on Thursday before bouncing, however it is still down 8bps this week, having shed 14bps in June.