Bond Markets’ GFC Echo Points to Turmoil Ahead

Bond markets’ GFC echo points to turmoil ahead

Cracks in US and Japanese debt are signs of regime change sweeping through the global economy. Investors must question their long-held beliefs.

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From Bloomberg: A surge in long-term bond yields is once again threatening to upend a crowded hedge-fund bet that Treasuries will perform better than interest-rate swaps. The trade is at risk of falling apart as borrowing costs for the world's biggest economies soar, diminishing the returns in US g... Article link

Global bond turmoil sparks concern for everyday Australians

With real yields surging in the U.S. and Japan’s bond market under pressure — and the impact is spreading well beyond Wall Street. The sharp rise in real yields, which account for inflation, is driving a sell-off in U.S. Treasuries. This is pushing up borrowing costs worldwide, including in Australia, where mortgage repayments, business loans and superannuation portfolios are all feeling the strain. Gold and bitcoin are also reacting, as investo…