Is this the man responsible for latest bond sell-off?

clock

The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.

Benchmark US treasury yields have spiked again in recent days as the Federal Reserve's pivotal 18-19 September policy meeting draws closer. Yields on 10-year debt rose to a two-year high of almost 2.9% on Monday, in anticipation of the Fed announcing a slowdown in its QE programme at the September meeting. That continued a sell-off that has seen 10-year yields rise 70 basis points since mid-June, with yields on gilts and other safe haven debt also moving higher. Ten-year yields rose by some 28bps last week alone, despite the relative absence of significant economic data points. ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Smoothing the client investment journey to and through retirement

Partner Insight: Smoothing the client investment journey to and through retirement

There are multifaceted challenges that can impact a pension portfolio’s performance and a client’s investment mindset. Smoothed funds offer a potential solution, says Claire Altman, managing director for Individual Retirement Solutions at Standard Life.

Sarka Halas
clock 10 March 2025 • 3 min read
The wonder women from Fundcalibre's rated funds list

The wonder women from Fundcalibre's rated funds list

'These two top-rated women have been quietly delivering for investors for the long term'

Darius McDermott
clock 06 March 2025 • 5 min read
Schroders AUM reaches £779bn as profits rise 14%

Schroders AUM reaches £779bn as profits rise 14%

Firm gives strategy update in full year results

Sorin Dojan
clock 06 March 2025 • 2 min read