Bond Yields Are Rising Across the Globe ๐ The Chart Report
Chart of the Day
๐ Today's Chart of the Day was shared by Robin Brooks.
The inflation trade has come roaring back this week, as a wave of hotter data may have forced investors to rethink the path of rates.
Global bond yields are moving higher in sync, with both current 10-year rates and long-term forward yields rising across the US, Germany, Japan, the UK, Italy, and France.
The sharp rise in 10y10y forward rates suggests investors increasingly believe structurally higher inflation, bigger deficits, and heavier debt issuance will keep rates elevated well beyond the current cycle.
The Takeaway: โHigher for longerโ has officially gone global.
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