Why bond yields are surging around the world
1 day, 23 hours ago

Why bond yields are surging around the world

Live Mint  

Government-bond yields have surged across the developed world in recent weeks, jarring stocks and pressuring indebted countries. Yields on U.S. Treasurys, which rise when bond prices fall, got their first big boost in October with the release of strong monthly jobs data that wiped away fears of a looming recession. Yields on ultrasafe government debt are largely determined by investors’ expectations for what short-term interest rates will average over the life of a bond. A growth outlier The good news for investors is that rising U.S. Treasury yields generally reflect a robust economy, which should support corporate profits. A drag on stocks Rising yields can pressure stocks by lifting borrowing costs across the economy and increasing the risk-free return that investors can get by holding Treasurys to maturity.

Treasury Bond Investors Rate German Yields Bond Yields Stocks Rising Treasurys Rising Yields  bond  world  treasury  interest  investors  surging  treasurys  yields  rates  stocks  rising  rate

History of this topic

Why global bond markets are convulsing
2 days, 6 hours ago

Why global bond markets are convulsing

Live Mint  

Almost everywhere, government-bond yields are rising fast. In a world where consumer prices are rising quickly, investors demand higher bond yields both because they expect central banks’ policy rates to stay higher for longer, and to compensate for the anticipated erosion of the principal’s purchasing power. Across theG10 nominal wages are still increasing at 4.5% a year, which is probably …

A bond selloff is rocking the world. You might want to take the other side.
Trending News
2 days, 21 hours ago

A bond selloff is rocking the world. You might want to take the other side.

Live Mint  

Wall Street is really worried about bonds. On Friday, a jobs report that blew past expectations pushed yields on 10-year Treasurys to 4.772%, the highest close since Nov. 1, 2023, and those on 30-year paper to 4.962%. Rather, it might be the result of investors applying a higher discount or “term premium" to hold long-term bonds, estimates by the Federal …

Last Time Bond Yields Surged Like This, Stock Markets Sank
Trending News
1 week ago

Last Time Bond Yields Surged Like This, Stock Markets Sank

Live Mint  

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years. The US 10-year Treasury yield climbed to levels just shy of 4.7%, the highest since April after an almost uninterrupted surge of more than one percentage point since mid-September. “Equity/bond yield correlations have turned negative again,” Goldman Sachs …

Euro zone bond yields edge off six-week highs
2 weeks, 1 day ago

Euro zone bond yields edge off six-week highs

Live Mint  

LONDON, Dec 30 - Euro zone bond yields dipped on Monday, edging off near-six-week highs hit at the end of last week as investors grappled with an uncertain monetary policy and borrowing outlook for 2025. A strong U.S. economy has limited the amount the Federal Reserve is expected to cut rates next year, while the euro zone economy has also …

Bond Vigilantes Are Putting Governments on Notice
2 weeks, 2 days ago

Bond Vigilantes Are Putting Governments on Notice

Live Mint  

-- On a rather quiet final Friday of the year, I used my Bloomberg Terminal to check how key government bond yields in advanced economies have changed in 2024. As part of the general move up, the US 10-year Treasury yield, a global benchmark, rose by 0.75 percentage point during the year to 4.63% last week, near its 2024 high …

India bond yields inch up ahead of debt sale on Friday
1 month, 3 weeks ago

India bond yields inch up ahead of debt sale on Friday

Live Mint  

By Dharamraj Dhutia MUMBAI, Nov 21 - Indian government bond yields trended marginally higher in early deals on Thursday as U.S. yields stayed elevated, while market participants awaited fresh supply through a weekly debt auction on Friday. New Delhi will sell benchmark bond worth 220 billion rupees, which will help increase liquidity and trading in this paper, as well as …

Why are bond yields surging around the global markets? - Explained
1 year, 3 months ago

Why are bond yields surging around the global markets? - Explained

Live Mint  

Over the past six months, the international bonds yield has been on a haywire. Sustained expectations of inflation are likely to keep yields above this conventional range, potentially detrimental to economic growth and the stock market, as both household and corporate spending face constraints. The prevailing high bond yields are primarily driven by the market demands for premiums when investing …

Why are global bond yields rising?
1 year, 4 months ago

Why are global bond yields rising?

Live Mint  

Global bond yields are flaring up to the levels unseen in years, drawing support from strong macroeconomic data that makes a case for continuing with the monetary tightening policy through interest rate hikes. The US treasury yields have climbed almost 40 bps month-to-date amid rising bets that interest rates will remain elevated for longer. However, while the 10-year US yield …

Global Equities, US Yields Fall Ahead of Debt Ceiling Vote
1 year, 7 months ago

Global Equities, US Yields Fall Ahead of Debt Ceiling Vote

News 18  

Global equities and U.S. Treasury yields were lower on Wednesday as risk-off sentiment dominated markets, with investors focused on a much-anticipated vote in Congress on raising the U.S. debt ceiling. The U.S. dollar rose to a more than two-month high after data showed that job openings unexpectedly rose in April, pointing to persistent strength in the labour market that could …

Bright start for bonds to new year eases market pressures
1 year, 11 months ago

Bright start for bonds to new year eases market pressures

Live Mint  

Another strong week for the U.S. bond market is giving investors increasing hope that they can turn the page on a brutal 2022. Last week’s consumer-price index report was then also encouraging, hinting at a continued slowdown in the type of services inflation that Fed officials have spotlighted as particularly important. Last year, the S&P 500 fell over 19%, while …

Pound plunge, the latest ill omen as market stress rises
2 years, 3 months ago

Pound plunge, the latest ill omen as market stress rises

The Hindu  

Sterling slumped to a record low on Monday, and a renewed selloff in British gilts pushed euro-zone yields higher as the fall out from last week's fiscal statement in Britain roiled markets for a second session. Share markets around the world also slid as concerns about high interest rates continued to put pressure on the financial system, though in a …

Bond Yield At 3-Year High: Where to Invest and How to Find Sectors? A Guide for Investors
2 years, 9 months ago

Bond Yield At 3-Year High: Where to Invest and How to Find Sectors? A Guide for Investors

News 18  

India’s benchmark 10-year government securities rose to a three-year high of 7.278 per cent on Wednesday, after the official data showed that the retail inflation in March stood at a 17-month high of 6.95 per cent. This situation negatively affects the equity markets also as high bond yields make the cost of debt higher for companies, thus affecting their valuation. …

Global bonds look to Federal Reserve’s Powell after inflation surges test nerves
3 years, 6 months ago

Global bonds look to Federal Reserve’s Powell after inflation surges test nerves

Live Mint  

The global bond rally is under threat from inflation surprises, weak auctions and central banks withdrawing support. Meanwhile, the Reserve Bank of New Zealand unexpectedly ceased quantitative easing in a possible prelude to a rate hike, driving yields on benchmark bonds up by as much as 11 basis points to 1.78%. Given Powell’s testimony comes “just after the very hot …

Surge in bond yields could drive growth off track: RBI
3 years, 9 months ago

Surge in bond yields could drive growth off track: RBI

Live Mint  

The Reserve Bank of India on Friday warned that rising bond yields could undermine the fragile global economic recovery, rendering most economies unable to tolerate high interest rates. In its latest currency and finance bulletin, RBI also pointed to the stubbornly high yields in the Indian bond market, cautioning that rising yields could prompt central banks to boost bond-buying. The …

Fading hopes of big US spending pull down yields overseas
4 years, 2 months ago

Fading hopes of big US spending pull down yields overseas

Live Mint  

The election-induced drop in Treasury yields rippled overseas, dragging down borrowing costs in Europe as investors wrote off hopes that a big U.S. spending package could give the global economy a jolt. German 10-year yields hovered around their lowest levels since March on Thursday, dropping to minus 0.657% in early trading before rebounding to minus 0.636%, slightly above Wednesday’s close, …

Euro zone bond yields fall after ECB’s Lane warns against complacency
4 years, 4 months ago

Euro zone bond yields fall after ECB’s Lane warns against complacency

Live Mint  

Government bond yields across the euro area fell on Friday, after the European Central Bank's chief economist Philip Lane said there was no room for complacency as inflation will be persistently low in the coming years. Germany's benchmark 10-year bond yield fell 3.5 basis points to -0.46%, down from a more than one-week high hit the previous session at around …

Opinion | The world could be staring at a long era of deflation
5 years, 4 months ago

Opinion | The world could be staring at a long era of deflation

Live Mint  

There are three games of chicken currently in play in the US. The second is associated with US President Donald Trump’s constant dissatisfaction with the US Federal Reserve on the need to cut real interest rates more aggressively, though a rate cut happened last quarter and another seems in sight. The third, which seems more perplexing, is the Fed’s internal …

Bond yields are plunging around the globe. How low can they go?
5 years, 5 months ago

Bond yields are plunging around the globe. How low can they go?

CNN  

New York CNN Business — Investors are so nervous about the trade war with China that they are frantically scooping up US government bonds and pushing yields sharply lower in the process. Yields are falling fast Investors were rushing to bonds as stocks plunged following the escalation of the trade war between the United States and China after China’s currency …

Bond rally: The bond market is freaking out. Here’s why that matters
5 years, 7 months ago

Bond rally: The bond market is freaking out. Here’s why that matters

CNN  

New York CNN Business — The bond market is once again sending a big fat warning sign about the US economy. Inverted yield curve is often a sign of bad things to come The yield on the 3-month US bond is currently higher than the 10-year, hovering around 2.35%. Yields sliding in rest of the world But bond yields around …

US markets fall amid weak economic data; bonds decline
5 years, 10 months ago

US markets fall amid weak economic data; bonds decline

Live Mint  

US stocks drifted lower in thin trading, while Treasuries also declined as investors grappled with concerns about growth and the latest twists in global trade. We’ve seen such a huge momentum shift to start the year.’’ Investors are also closely watching incoming economic numbers to see how they may nudge central bankers that are in a wait-and-see stance. At the …

Discover Related