Interest rate rises temper enthusiasm of investors

The global fixed interest markets are preparing for a period of sustained interest rate rises, the l...

The global fixed interest markets are preparing for a period of sustained interest rate rises, the like of which has not been seen for 10 years. Back in 1994, an environment that saw US interest rates increase from 3% to 6% in 12 months led to a period of sustained underperformance from the fixed interest market. US Treasuries are currently suffering as a result, with the yield on the 10-year Treasury Bond reaching an eight-year high of 4.45% recently. This situation has not been aided by comments from retiring San Francisco Federal Reserve president Robert Parry, who suggested interest ...