«The declines add to the urgency for fixes to the credit crisis,» wrote Tony Crescenzi, chief
bond market strategist with Miller, Tabak & Co. in New York in an email note.
«The declines reflect the seizing up of the credit market and withdrawals of monies from money market funds, which held $ 700 billion of commercial paper at the end of the second quarter,» wrote Tony Crescenzi, chief
bond market strategist, Miller, Tabak & Co. in New York in an email note.
Powell's comment was pointed to by
bond market strategists as a reason for a sudden pop in bond yields.
Yet for now,
bond market strategists are still debating the reasons for the latest spike in bond yields.
Not exact matches
Russ Koesterich, BlackRock's chief investment
strategist, recommended emerging
market sovereign
bonds because of the relatively low debt of the countries issuing them.
In a client note on Thursday titled «Yanking down the yields,» the interest - rates
strategist projected that
bond yields would be much lower than the
markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.
«A bear
market in
bonds calls for more than a global cyclical upswing, as not all forces that dragged yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a
strategist at Robeco.
«The pricing and performance of the new issues this week indicates the demand for
bonds has remained strong despite the broader
market weakness,» Yuriy Shchuchinov, credit
strategist at BofAML, said in a note to clients.
Brian Belski, BMO Capital
Markets» chief investment
strategist, says
bonds are still the main place for investors to stash money, even with today's low yields.
John Canally, investment
strategist at LPL Financial, suggested that financial
markets had overreacted in anticipation of reduced
bond purchases.
How legislators handle all these issues could have a direct impact on the
bond market, says Tom DeMarco, CFA ®, a
market strategist in Fidelity Capital
Markets» fixed - income division.
Turning green dollars into green
bonds At the age of 50, Australian
marketing strategist Sean Kidney was in a crisis.
The
market has yet to reach critical mass, but given the kinds of projects funded by state and local governments, «the
market should be a natural issuer of green and social impact
bonds,» notes Victoria Irving, Equity
Strategist for the Global Sustainability Research team.
Alfredo Viegas, an emerging -
markets strategist for boutique brokerage Knight Capital Group, is encouraging clients to bet against Israeli
bonds.
«Anyone who hasn't invested in fixed - income securities longer than five years has been a loser over time,» says Hank Cunningham, fixed - income
strategist at Odlum Brown in Toronto, and the author of In Your Best Interest: The Ultimate Guide to the Canadian
Bond Market.
«If 10 - year yields are moving north of 5.30 percent and making a new high yield for the cycle, you might argue you were in a bear
market,» said Richard Gilhooly, senior U.S.
bond strategist of BNP Paribas Securities Corp., speaking at the Reuters Investment Outlook Summit on Tuesday.