Is this the man responsible for latest bond sell-off?


The increasing likelihood of former US treasury secretary Larry Summers becoming Fed chairman next year has prompted a further spike in bond yields, analysts suggest.

Benchmark US treasury yields have spiked again in recent days as the Federal Reserve's pivotal 18-19 September policy meeting draws closer. Yields on 10-year debt rose to a two-year high of almost 2.9% on Monday, in anticipation of the Fed announcing a slowdown in its QE programme at the September meeting. That continued a sell-off that has seen 10-year yields rise 70 basis points since mid-June, with yields on gilts and other safe haven debt also moving higher. Ten-year yields rose by some 28bps last week alone, despite the relative absence of significant economic data points. ...

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