Harsh sell-off grips govvies worldwide, but primary market to truck on

By Lewis McLellan
09 Apr 2021

Government bonds around the world were hit by a wave of selling on Friday morning without an obvious trigger from new data or central bank policy updates. However, traders believe a heavy supply schedule and news of increasing deficits are likely to blame.

Italy’s prime minister Mario Draghi announced a €32bn economic stimulus package late on Thursday, increasing the country’s already sizable deficit.

“That, combined with news over the past two weeks of Germany and Holland’s deficits increasing, as well as a lot of supply this week, left the market feeling ...

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