Description: The global bond market selloff has erased all of this year’s gains as historic market moves from Germany to the U.S. and Japan whipsaw traders. After being up as much as 2.3 percent as of mid-April, the Bank of America Merrill Lynch Global Broad Market Index of bonds with a total face value of $41 trillion is now down 0.4 percent for the year.

Source: Bloomberg.com – video report

Date: June 03, 2015

Link: http://www.bloomberg.com/news/articles/2015-06-03/bond-rout-wipes-out-15-gains-as-traders-fret-even-leaving-desks

Questions for Discussions:

• Summarize the reasons presented to explain bond market activity?
• How do you think bond traders should deal with these conditions?