The bond market is bringing the ’90s back
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 4 October 2023
⏱️ 7 minutes
🧾️ Download transcript
Summary
News of a leaderless House of Representatives is understandably grabbing headlines, but don’t miss what’s happening in the bond market. Investors are rushing to sell bonds, leading to higher borrowing costs and threatening prospects for a soft landing. But we’ve been here before. Plus, wealthy households cut back on charitable giving, and other brands threaten Nike’s sneaker dominance.
Transcript
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| 0:30.5 | We're tracking the surge in interest rates, not directly engineered by the Federal Reserve, |
| 0:35.5 | but a consequence of investors rushing to sell bonds. |
| 0:38.9 | I'm David Brankachio, with the focus on the dramatic developments leading to a leaderless |
| 0:43.5 | House of Representatives, don't miss what's happening in the bond market, a surge downward |
| 0:48.1 | in recent days that amplifies the Fed's efforts to slow the economy. |
| 0:52.2 | This bond's sell-off, leading to higher costs for borrowing, carries a risk of turning |
| 0:56.8 | a soft landing for the economy into a recession. |
| 1:00.2 | The last time, the only time I've ever seen market behavior that even comes close to this |
| 1:05.0 | was in the 1990s. |
| 1:07.2 | Christopher Low is chief economist at FHN Financial in New York and a close observer of bond |
| 1:12.3 | market psychology. |
| 1:14.0 | We had occasionally situations that we call buyer strikes. |
| 1:18.4 | The idea was the usual people who bought bonds were sitting on the sidelines. |
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