Bonds set for bruising September; stocks fare better
SINGAPORE: Global bonds wobbled on Wednesday and were set for their worst month in years, hit by a toxic mix of deteriorating government finances, a glut of issuances and rising inflation as the seven-month-old US-Israeli war on Iran keeps energy costs elevated. Meanwhile, stocks fared better, largely unfazed by the surge in bond yields and were upbeat in Asia. The rise in borrowing costs has…
Global bonds experienced a significant downturn in September, setting the stage for their worst monthly performance in years. This decline was driven by deteriorating government finances, a surplus of issuances, and escalating inflation, all compounded by the ongoing US-Israeli conflict in Iran that has contributed to surging energy costs.
Despite the bond yield surge, stocks managed to maintain their stability, largely insulated from the inflationary pressures. This resilience in the equity markets is attributed to robust corporate earnings, a healthy global economy, and sustained interest in artificial intelligence. While higher borrowing costs have been a major talking point, the impact on stocks has been comparatively modest.
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Also reported by 2 other outlets
- Bonds set for bruising September; stocks fare better investing.com
- Stocks fare better as bonds face rough September freemalaysiatoday.com
