PA ANALYSIS: Time to forget about ‘safe havens’
The events of recent weeks could lead investors to draw a stark conclusion; there is no such thing as a ‘safe haven’ in investment terms any more.
The events of recent weeks could lead investors to draw a stark conclusion; there is no such thing as a ‘safe haven’ in investment terms any more.
The concept of daily liquidity for bond funds could soon be tested like never before if some of the more pessimistic market commentators are proved right.
The FTSE 100 fell significantly as markets fretted over whether Greece will fail to reach a deal with its creditors and default on its €300m International Monetary Fund payment tomorrow.
After months of grinding yield compression the pressure valve on the German sovereign bond market was released, with 10-year bund yields jumping almost ten-fold in the space of a few days.
German borrowing costs over five years fell into negative territory for the first time on Thursday, as demand for German bonds continued unabated.