Bonds are collapsing across global markets

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The Federal Reserve’s signal of fewer rate cuts in 2025 has reshaped investor expectations, prompting a reassessment of inflation risks and tightening financial conditions globally. As borrowing costs rise, central banks in other economies are adjusting policies to maintain stability. Simultaneously, the sharp increase in U.S. Treasury yields is influencing global fixed-income markets, as investors seek higher returns by shifting capital away from lower-yielding bonds in Europe and Asia. This movement of funds is driving up borrowing costs and yields in those regions, creating a ripple effect across financial markets worldwide.

https://x.com/DarioCpx/status/1921825137411658005

U.S. Treasury yields moved higher on Monday after the U.S. and China agreed to slash tariffs on each other’s goods, in a move welcomed by investors.

At 5:09 a.m. ET, the 10-year Treasury yield was up nearly 6 basis points to 4.433%, while the 2-year Treasury yield jumped 10 basis points to 3.996%

One basis point is equal to 0.01% and yields and prices move in opposite directions.

https://www.cnbc.com/2025/05/12/us-treasury-yields-us-and-china-agree-to-slash-tariffs-.html?taid=6821bdc6bec9230001c8c760&utm_campaign=trueanthem&utm_content=main&utm_medium=social&utm_source=twitter