Big guns defy sell-off as US high grade bonds hold firm

By David Rothnie
25 Feb 2021

The sell-off in the US Treasury and equity markets intensified this week as hopes rose of faster economic growth which could lead the Federal Reserve to taper quantitative easing. But that did not stop Japanese telecoms company Nippon Telegraph and Telephone Corp raising $8bn with its first dollar bond issue for nine years, amid a stampede for cheap funding.

Fears over rising rates have yet to envelop high grade credit and Federal Reserve chair Jerome Powell struck a dovish tone when he said it could take more than three years to achieve the central bank's inflation goal. The question is whether or not the market will believe ...

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