Wall Street Journal (October 2)
“The monthslong rout in global government bonds is getting messier and weirder.” For developed nations, sovereign debt had “moved broadly in tandem.” But on Thursday, “a flight to bonds considered safe drove U.S. Treasury yields lower, while those of French, Italian and Greek bonds jumped in a sudden divergence.” While this was a “reprieve of sorts for the U.S…. it was also a reminder of how extended selloffs in bonds can cause unexpected problems.” There is “a faint smell of a crisis in the making.”
Tags: Bonds, Developed nations, Divergence, Flight, France, Global, Greece, Italy, Messier, Reprieve, Rout, Selloffs, Sovereign debt, Treasury yields, U.S., Unexpected problems, Weirder
American Banker (August 2)
“Investors were in a sour mood Wednesday after Fitch Ratings downgraded the U.S. government’s credit rating, but analysts expect the firm’s action to have little long-term impact on banks. The markets didn’t exactly shrug off the downgrade…. But the main point made by Fitch’s action — that the U.S. political system is messier than it used to be — is one that analysts say has long been obvious to investors.”
Tags: Analysts, Banks, Credit rating, Downgraded, Fitch, Impact, Investors, Markets, Messier, Political system, Sour mood, U.S. Government
