Soaring bond yields ‘not even close’ to cooling red-hot US economy, investors say

Live updates

1. 1h ago

   Bond Yields Surge To Multi-Decade Highs As Economy Booms

   Global bond yields have surged to fresh two-decade highs, matching the 5% mark and deepening a severe market sell-off as oil prices simultaneously hit $105 per barrel. Despite soaring borrowing costs and aggressive rate hikes, the robust United States economy continues to power through, with consumers maintaining high spending levels. Investors warn that these elevated yields are not even close to cooling the red-hot economic expansion, entering an uncharted territory for markets that many investors have never seen before.

   Why it matters

   Rapidly rising interest rates and bond yields have historically preceded financial calamities, leading market observers to warn that something always breaks when monetary tightening moves this fast. The current environment forces investors to confront a new reality of higher global borrowing costs while corporate and consumer sectors display unexpected resilience. This dynamic creates a stark divergence between traditional financial metrics and the ongoing economic boom.

   What is confirmed

   • Bond yields surged to fresh two-decade highs.
   • Oil prices hit $105 per barrel.
   • The global bond sell-off deepened, sending borrowing costs higher around the world.
   • Bond yields reached the 5% mark.

   Still unconfirmed

   • Soaring bond yields are not even close to cooling the red-hot US economy.

   What to watch next

   • Whether continued rising borrowing costs eventually trigger a systemic financial breakage or economic slowdown
   • Further movements in global oil prices above $105 per barrel
   • Consumer spending data to see if higher yields finally curb demand
   Sources used for this update (11)

   1. NBC News — Bond yields surge to fresh two decade highs as oil prices hit $105 per barrel
   2. CBS News — Why the bond market is freaking out, and what it means for your money
   3. Bloomberg.com — Bond Yields at 5% Mark New Era 'Until Something Breaks'
   4. Bloomberg — This Is a World Many Bond Investors Have Never Seen Before
   5. cnbc.com — History shows financial calamities occur when rates rise rapidly like this: 'Something always breaks'
   6. Business Insider — 3 Reasons Investors Should Be Ready for Bond Market Sell-Off to Worsen
   7. Financial Times — Soaring bond yields ‘not even close’ to cooling red-hot US economy, investors say
   8. WSJ — The Robust U.S. Economy Powers Through Rate Hikes and Rising Bond Yields
   9. CNN — Global bond sell-off deepens, sending borrowing costs higher around the world
   10. Yahoo Finance — Defying higher bond yields: Consumers keep spending and the economy keeps booming
   11. CNBC — The 10-year Treasury yield is at its highest in nearly two decades. How we got here
   confidence 100%