Under pressure from central banks determined to suppress inflation even at the cost of a recession, global bonds fell into their first bear market in a generation.
Bloomberg’s aggregate global total return index of investment-grade government and corporate bonds has fallen more than 20% from its unhedged 2021 high, the biggest draw since its inception in 1990. US officials in Europe have recognized the importance. of tighter monetary policy in recent days, based on Federal Reserve Chairman Jerome Powell’s hawkish message at the Jackson Hole symposium.