Due to continuing expectations of very strong economic growth this year and continuing concerns about rising inflation, significant selling pressures were evident on global bond markets last week. As a result, the broadest global bond index, Bloomberg Barclays Global Aggregate Bond, lost 1.0%, while the average global bond yield to maturity rose by 0.03 percentage point to 1.11%. The yield to maturity of the most watched bond, 10-year US government bond, further increased by 0.16 percentage point to 1.57%.
Stock markets, according to the broadest global stock index MSCI All Country World, recorded a small gain of 0.1%. Value stocks performed well, gaining 1.9% according to the MSCI All Country World Value index. On the other hand, growth stocks according to the MSCI All Country World Growth index declined by 1.8%. NYSE FANG+ index of the big US technology stocks declined even by 4.8% last week.
Commodities did very well again. S&P GSCI global commodity index rose by 3.0%. The price of Brent crude rose another 4.9% to $ 69 a barrel. On the other hand, the price of gold fell another 1.8% to $ 1,699 an ounce.
Investment Strategist at Conseq Investment Management, a.s.