From a macroeconomic point of view, the impact of the global bond market includes inflation, rising interest rates, geopolitical risks and many other factors. The gradual recovery of the American economy has pushed up the global interest rate, so the yield of American government bonds has been rising, which directly leads to a large amount of domestic and foreign funds flowing to the United States. In this case, a large number of funds were withdrawn from bonds, which led to a large number of selling, and eventually pushed the bond market to collapse.
In addition, market risk sentiment may also lead to a decline in the bond market. These emotions include concerns about inflation growth and geopolitical risks. This kind of worry will lead investors to reconsider their portfolios and flow more funds to investments similar to the stock market. This directly leads to the change of the relationship between supply and demand in the bond market, which leads to the decline of bond prices and affects the net value of bond funds.
In addition, factors such as policy adjustment may also lead to a decline in the bond market. Policy adjustment may include interest rate adjustment and monetary policy. When the central bank implements a healthy monetary policy, the liquidity in the market will be affected. This will affect the curve of assets in the market, thus affecting the bond market. For example, if the central bank strengthens monetary policy, it may curb inflation by raising interest rates, which will directly affect bond prices.
Finally, it is undeniable that market manipulation may also lead to the decline of the bond market. Large financial institutions, including banks and private equity firms, hold a large number of interest or fixed-rate bonds in the bond market, and these companies have the ability to manipulate the market. Once a large number of selling activities begin to occur, they may take advantage of these opportunities to engage in a large number of transactions in the computer trading market, thus causing market changes.
To sum up, the decline of the bond market is not caused by a single factor, but may be the result of intensive effects of many factors such as macroeconomics, market risks, policy adjustment and market manipulation. Therefore, investors should be vigilant, diversify their assets in many ways, and avoid the risks caused by the over-allocation of a single asset.