Bond markets from US to Japan whacked as inflation and fiscal worries take hold - Reuters

“Global bond markets have plunged, with the U.S. 30‑year Treasury yield climbing above 5.33%—a 19‑year peak—while Japan and other economies face similarly soaring long‑term rates. Persistent inflation, large fiscal deficits, and heightened geopolitical tension are forcing investors to demand higher yields, which in turn push up borrowing costs for households and corporations. In the United States, the ripple effect is already visible in rising mortgage rates and tighter credit conditions, potentially slowing the housing market and consumer spending. Expert Analysis: The surge in yields reflects investors pricing in persistent inflation and sizable fiscal gaps, pressuring the Federal Reserve to maintain higher policy rates longer. Prolonged elevated borrowing costs could dampen economic growth and constrain corporate investment in the near term.”