Rising Global Bond Yields a Worrisome Signal

Global bonds yields are on the rise (lower prices) mostly due to worries about inflation, government debt sales and fiscal discipline. U.S. Treasury yields have advanced, with the 30-year bond now approaching the 5% level, while yields on U.K., Australian and Japanese bonds are also increasing. The sell off reflects traders’ concerns around heavy government spending and the potential inflationary fallout, with a Bloomberg gauge of global bond returns falling 0.4% on Tuesday. A deluge of corporate debt sales on Tuesday and uncertainty around the Federal Reserve’s independence are adding to the bond market pressures. Veteran market watchers know that history shows the months of September and October can be rough for the stock, financial and currency sectors—which in turn can negatively impact agricultural markets.
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