Rising rates, a risk for life insurance

In the space of six months, the rate of the French government bond, the 10-year OAT, jumped 2%, from 0.2% in January to 2.15% on Wednesday June 29. 298881620/Drazen – stock.adobe.com

Rarely have we seen such violent movements on the bond markets. In the space of six months, the rate of the French government bond, the 10-year OAT, jumped 2%, from 0.2% in January…

Rarely have we seen such violent movements on the bond markets. In the space of six months, the rate of the French government bond, the 10-year OAT, jumped 2%, from 0.2% in January to 2.15% on Wednesday. The trend is even more marked in other countries of the Old Continent such as Italy, or in the United States where sovereign debt rates had not experienced such significant upward movements since 1973. “It’s not a crash because there is no panichowever tempers director of research Jean-François Robin, at Natixis. But the speed of the rise in rates and the high volatility in the bond markets are impressive.

Rates began to soar in late February, as the war in Ukraine began which made the inflation spike even worse. “This crisis has been superimposed on that generated by the Covid and the Chinese bottlenecks”, point Jean-François Robin. The rate hike is far from over. “We…

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