Economics
Everything You Thought You Knew About Bond Yields Is Wrong: HSBC
Look at debt levels, demographics and inequality instead
The U.S Treasury Building in Washington.
Photographer: J. David Ake/APThis article is for subscribers only.
It's an article of faith in the credit markets that certain fundamental forces propel the yields on government debt, specifically economic growth, state spending, inflation and central bank guidance.
Not so, says HSBC Holdings Plc fixed-income analysts led by Steven Major. Instead, high debt levels, demographic forces and wealth inequality overwhelm the traditional forces cited for the feared unravelling of the bond market's 35-year bull run this year.