The more central banks mess around with global bond markets, the more you have to question how you invest in bonds.
Think safe-haven debt, such as U.S. Treasuries, will provide a hedge against losses on stocks? Not always. Or that central bankers really have control over borrowing costs? Or that you ought to get paid to lend money to Germany, Switzerland, France, and Belgium? Nope, on both counts.
The latest market turmoil is underscoring the difficulties of relying on conventional wisdom at a time when bond markets are dominated by the trades of Chinese, European, and U.S. policymakers. While stocks globally just underwent a plunge that eliminated US$5 trillion of value in less than two weeks, bonds acted in some surprising ways.
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