Charting the Global Economy: Bond yields soar to kick off 2025
Charting the Global Economy: Bond yields soar to kick off 2025 Global bond markets sold off this week as investors worried about lingering inflationary pressures and heavy government borrowing. A selloff in the $28 trillion US Treasury market deepened after a blowout employment report reinforced bets among traders and Wall Street economists that the Federal Reserve will hold off on further interest-rate cuts. Britain’s latest bond turmoil has drawn comparisons with the Liz Truss mini-budget debacle of 2022, while yields in Japan climbed to the highest in over a decade. The Treasury market is looking intimidating again, and politicians should take notice, as should everyone else. This selloff is more complicated and ominous than some. It’s also not limited to the US. Bond markets in the bigger European economies are also testing a high made late in 2023. There was a belief that policy rate cuts, made by all the main central banks, would ensure that remained the peak. I...
