After stocks just saw their best 12-month performance since 1936, it should not be a total surprise that Treasuries have suffered… but the extent of the bond bloodbath is almost unprecedented.
After $17 trillion of liquidity was gushed across the global markets (raising all equity boats), the recent prospect of resurgent inflation has pushed government and corporate bonds around the world to their worst start to a year this century.
Bloomberg reports that the notes have lost over 3.7% so far in 2021, according a Bloomberg Barclays index of investment-grade securities across currencies going back to 1999. That’s worse than for similar periods in previous years, even after dip-buying in recent days.
Notably, while equity risk has tumbled, the last few months have seen uncertainty explode higher for rates.