The Fed is (almost) powerless against the bond selloff
New Delhi, Sept. 18 -- Long-dated U.S. government bonds, as measured by the iShares 20+ Year Treasury Bond exchange-traded fund, have generated 4.4% in losses this year on a total-return basis. Much of the damage was felt over the summer.
Inflation is a minor factor behind the U.S. bond rout. Solid economic growth, mountain of national debt, and higher interest rate forecasts are the primary drivers-meaning that even if the Fed wins its war on inflation, yields are likely to remain high.
Published by HT Digital Content Services with permission from MINT....
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