Once Unthinkable Bond Yields Now the New Normal for Markets
- Dramatic bond selloff reinforces shift from easy-money era
- Larry Fink sees ‘embedded inflation’ pushing US 10-year to 5%
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It was the week that bond markets finally seemed to grasp what central bankers have been warning all year: higher interest rates are here to stay.
From the US to Germany to Japan, yields that were almost unthinkable at the start of 2023 are now within reach. The selloff has been so extreme it’s forced bullish investors to capitulate and Wall Street banks to tear up their forecasts.