The bond market continues to tighten the screws, and everything else is feeling it

AI summary

<p class="text-align-justify" style="text-align: justify;">It's a new week but once again we are starting to see bond yields push higher again. And if this keeps up, it will be increasingly more difficult for broader markets to ignore.</p><p class="text-align-justify" style="text-align: justify;">10-year Treasury yields are touching 4.80% again, its highest levels since 2023, while 30-year yields in the US are starting to nudge back closer to 5.30%. It's a similar story elsewhere around the globe as borrowing costs in the likes of the UK, Japan, and Germany are all hovering around multi-year or multi-decade highs. Today itself, 10-year Germany bond yields are back at 3.39% - the highest since 2011.</p><p class="text-align-justify" style="text-align: justify;">This is all coming together amid a combination of fiscal and inflation risks, which is threatening to alter the landscape of the market. Here is more context from last week: <a href="https://investinglive.com/news/the-tectonic-shift-that-is-taking-place-in-the-bond-market/" rel="follow">The tectonic shift that is taking place in the bond market</a></p><p class="text-align-justify" style="text-align: justify;">And this week we're also seeing oil prices sure higher again, adding more upside risks to the inflation outlook. And it comes in a tricky time for markets, just before the US CPI report on Friday as well as key central bank decisions with the ECB, Fed, and BOJ all set to be tested.</p><p class="text-align-justify" s