Bond Market Shudders
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"Major financial events often happen first in Japan, for example the late-1990s tech bubble bursting first in Japan," Albert Edwards wrote Thursday.
In the past, when bonds sold off, it typically was seen as a promising sign for stocks. It meant that traders were betting on a stronger economy — but not this time.
With the U.S. economy close to full capacity, more borrowing adds inflationary pressure, and so could lead the Fed to keep rates higher for longer.
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Bond yields have spiked this week on investor concern over the tax bill swelling the US deficit. Here's why markets are worried.
The Japanese government bond market was already having a bit of a springtime nightmare, but a poor auction of 20-year debt earlier this week has sent long-end yields soaring to their highest levels ever.
From ho-hum debt auctions to plunging long-term bond prices, investors are sending a clear message to governments that in the current climate of uncertainty they need to pay more to borrow for decades ahead.
President Trump’s ‘big beautiful spending’ bill is giving investors pause as bond yields move higher over debt and deficit concerns. The 10-year Treasury yield topped 4.5% creating headwinds for U.S.