Reply To: Traders Market Weekly: Bull or Bear Trap Ahead of the Fed?


October 17 – Reuters (Davide Barbuscia): “Government bonds may not offer much protection in a recession if surging inflation pressures central banks to continue tightening monetary policy, the BlackRock Investment Institute said. Risks of a global recession have increased as central banks around the world tighten monetary policy to bring down consumer prices… ‘Investors traditionally take cover in sovereign bonds, but we see this recession playbook as obsolete … Result: We stay underweight Treasuries,’ they said, adding they expect government bond yields – which move inversely to prices – will keep rising.”