Opinion
Why bond markets are worried about a 1967-style ‘soft landing’
It’s rare for central banks to be able to pull off a “soft landing”, and even rarer for them to do so when official rates are below nominal economic growth.
Karen MaleyColumnistAre we witnessing a replay of 1967, when a “soft landing” combination of a buoyant US jobs market and stubborn price pressures served as the prelude to an inflationary surge?
That’s clearly the fear haunting bond markets. The yield on benchmark US 10-year bonds has climbed to 4.61 per cent – the highest level since November – after economic data showed US consumers are refusing to tighten their belts, despite persistently high prices and US interest rates at a 23-year high. (Yields rise as bond prices fall.)
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Financial services
Fetching latest articles