Bonds Continue Decline as Central Banks Signal Waning Stimulus
ByA sell-off in global bonds continued on Friday, as the realization set in that the end is near for policies that have kept interest rates exceptionally low for a decade.
A speech this week by Mario Draghi, the president of the European Central Bank, signaled at best a very small change in the direction of monetary policy. But a confluence of upbeat utterances by Mr. Draghi and other top central bankers, along with growing optimism about the long-suffering eurozone, added up to an aha moment for financial markets.
Investors and traders seemed to suddenly realize that the era of ultracheap money is coming to an end. The revelation led to a wholesale reassessment of the relative prices of stocks and bonds…
Bonds Continue Decline as Central Banks Signal Waning Stimulus
