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Are you a little confused about the bond market lately and the fast climb in fixed interest rates? Over the past 2 weeks there have been over 4 increases. One of my mortgage references, Karen Dennehy, has this to say:


"The short answer is the big Institutional investors are dumping Bonds and their current low yields and keeping their cash with a plan to buy bonds later when yields are much higher...they were frightened by Bernake's comments that the US Fed would stop buying bonds and so it seems we are in a free fall of dumping Bonds, which in turn causes yields to go upwards, and at the same time the stock market and gold markets are being sold as well...this is pretty rare indeed."


This article might help explain why this is happening.



If you have questions about this please don't hesitate to get in touch with either myself or Karen.



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