Bonds sell off has sparked fears of further ‘taper tantrum.’
Investors dumped government bonds on Wednesday and again on Thursday. This marked three days of heavy selling for Treasurys and eurozone debt. This came after the European Central Bank hinted it would unwind some of the EUR2.3 trillion ($2.6 trillion) in bond buying that has buoyed these markets.
Investors are now betting that the days of easy money may be over. As a result, the euro also continued its rise against the dollar following its biggest one-day gain in a year on Tuesday.
Analysts are now weighing whether these moves will turn into a full-scale “taper tantrum.”