The central banks are not giving the markets any breathing space

Price fluctuations of one percent are nothing special for investors on the stock markets. For investors in the bond market yes. Just a year ago, it was the big exception when the prices of Bunds or US government bonds fluctuated by one percent or more in one day. This has changed radically this year with the skyrocketing inflation rates and the drastic interest rate hikes by the central banks.

Now there are days in bond markets that are erratic compared to earlier times. After the US Federal Reserve raised interest rates again by 0.75 percentage points on Wednesday evening and investors lost hope that interest rate hikes would come to an end in the foreseeable future, the prices of ten-year US bonds fell by 1.4 percent within two days.