Global bonds decline amid buyback boost
The global bond market is experiencing ongoing losses for the second consecutive week, despite Washington's efforts to support liquidity through repurchase operations, which were temporarily doubled to ease inflationary pressures and rising yields. However, investors continue to sell debt instruments, considering that interventions which are not directly funded with cash remain temporary measures that do not address the underlying structural issues in the market. Yields on European and American bonds are heading toward high levels not seen in years, with expectations of further interest rate hikes due to inflation and economic shocks. Meanwhile, investors are questioning the effectiveness of these interventions in permanently reducing borrowing costs.
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