Reasons Behind the Rise in Global Bond Yields
The selling pressure in bond markets worldwide and the increase in borrowing costs are changing investors' expectations for the future.
As the selling wave deepens in global bond markets, long-term borrowing costs from the US to Japan are reaching their highest levels in recent years. Sticky inflation, strong economic growth, and rising public debt are causing investors to demand higher yields to hold bonds.
Why Markets Are Under Selling Pressure
There is not a single reason behind the selling pressure in the markets. Many factors, ranging from strong growth and energy prices to central bank rate hikes and public debt, are pushing bond yields up simultaneously.
Factors Pushing Yields Up
According to Bloomberg analysis, the reasons for rising global bond yields include resilient economic growth, high commodity prices, interest rate hikes, and increased corporate borrowing.
Public Debt and Budget Deficits
Elements such as budget deficits, public debt, rising defense spending, and the Japan effect also stand out as other important headings supporting the cost increase in the markets.
Global Structural Changes
Factors such as trade wars, changes in the investor profile, and the end of the global savings glut indicate that bond yields will continue to be a main agenda item for the global economy in the upcoming period.