Bonds

Bonds tumbled across the world on Thursday after Federal Reserve Chairman Jerome Powell’s latest hawkish pivot, with yields from Wellington to London breaching multi-year highs.

Russia’s troop buildup on the Ukraine border is now being cited by strategists as one of the main threats to global markets.

Global bonds rallied Friday, with investors seeking havens from a technology stock sell-off and concern over increased U.S.-Russia tension.

Financial companies are leading a rush to lock in still-attractive borrowing costs before the Federal Reserve hikes interest rates, potentially adding to volatility and market uncertainty.

Treasury yields rose a second day amid increasing conviction that the Federal Reserve will raise rates at least three times beginning in May.

Money managers are hiking bets on the great inflation trade of 2021, as the biggest risk to price stability in more than a decade rocks corporate boardrooms and Wall Street trading floors.

Government and corporate bonds globally have already lost 4.4% this year, the biggest decline for any similar period since 2005, according to a Bloomberg index.

Blowout results from the big U.S. banks may spur even more bond issuance from the financial sector, with borrowing costs still attractive even as some market rates rise. The bond deal comes as risk premiums in corporate debt remain low.

Offsetting the weak job-creation number were an upward revision to August payrolls, a bigger-than-expected drop in unemployment and a faster pace of wage growth.

While a host of factors are at play behind the bond-stock relationship, one thing that links them together is the perception of growth.