Bond rates get an adjustment
One of the major themes of investing in 2016 has been the persistence of ultra-low interest rates. Much has been made of the fact that fully 1/3 of the sovereign (government) bond yields are now below zero. In an era where central banks buy bonds hand over fist insuring an almost unlimited demand, market participants have become complacent and expecting of rates to remain low and going lower. Thursday and Friday, central banks started to perhaps begin taking baby steps in the other direction. (more…)