WS #15187
Global bond markets are in freefall, with the US 10-Year yield reaching levels last seen in 2002 and UK 30-Year Gilt yields breaking 6%, a level not seen since 1998. This systemic sell-off is driven by sticky inflation data, including a rise in Swiss CPI to 1.0%, and a flight to safety that is paradoxically pushing yields higher due to supply fears. The market implication is severe pressure on growth stocks, REITs, and highly indebted corporations, as the cost of capital becomes prohibitive.
Global Bond Crisis
Global bond markets are in freefall, with the US 10-Year yield reaching levels last seen in 2002 and UK 30-Year Gilt yields breaking 6%, a level not seen since 1998. This systemic sell-off is driven by sticky inflation data, including a rise in Swiss CPI to 1.0%, and a flight to safety that is paradoxically pushing yields higher due to supply fears. The market implication is severe pressure on growth stocks, REITs, and highly indebted corporations, as the cost of capital becomes prohibitive.