What to know about the sell-off in world bond markets
Global government bond yields are rising, driven by inflation concerns, increased government borrowing, and geopolitical tensions in the Middle East. This trend is impacting consumer mortgage and loan rates while prompting potential policy interventions.
Why it matters
Rising bond yields directly affect the cost of borrowing for individuals and businesses, potentially slowing economic growth and increasing financial market volatility.
Interest rates on government bonds are rising again around the world, making borrowing more expensive for consumers and businesses and heightening concerns about whether governments are issuing more debt than financial markets can handle.
Rising bond yields are one of the few forces in the world strong enough to get politicians to snap to attention. They can also have a big impact on Americans’ personal finances and on the broader economy. The bond market can dictate how much ordinary people have to pay on their mortgages and car loans, as well as how much they earn from their savings accounts and 401(k) plans.
Fighting has flared up again in the Middle East, causing oil prices to jump and renewing inflation worries. Investors typically demand higher interest rates, or yields, on government bonds when inflation is high or they think it may get worse.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in