September has proved to be the worst month so far in 2023 for bond markets and equities, largely on the back of the “higher-for-longer” mantra from central banks on interest rates.
It is the scaling back of rate cut expectations that has done the real damage to bonds, with negative knock-on consequences for stock markets.
The rise in bond yields since 2020 has been dramatic in the face of the completely changed monetary policy environment.
