This should NOT be happening.
Bond yields are becoming totally uncontrollable.
We are witnessing a synchronized and global explosion of rates:
United States 30 years: close to 4.9%
Australia 5 years: up more than 2%
Japan 10 years: bullish breakout
👉 This never happens in a stable economy.
In finance, we analyze correlations.
Generally, idiosyncratic risks remain local.
But that is not at all what is happening today.
Why are we observing extreme statistical events across all major sovereign bond markets at the same time?
👉 Because it concerns the very mechanics of the system.
Long rates say something fundamental:
👉 the credibility of states,
that is to say, their ability to honor their future debts without massively resorting to inflation.
Such a coordinated adjustment means one clear thing:
👉 the market no longer adheres to the dominant macroeconomic thesis.
This signals internal tensions in the collateral system.
📢 The bond market is telling you, very explicitly, that something major is about to happen.
Bond yields are becoming totally uncontrollable.
We are witnessing a synchronized and global explosion of rates:
United States 30 years: close to 4.9%
Australia 5 years: up more than 2%
Japan 10 years: bullish breakout
👉 This never happens in a stable economy.
In finance, we analyze correlations.
Generally, idiosyncratic risks remain local.
But that is not at all what is happening today.
Why are we observing extreme statistical events across all major sovereign bond markets at the same time?
👉 Because it concerns the very mechanics of the system.
Long rates say something fundamental:
👉 the credibility of states,
that is to say, their ability to honor their future debts without massively resorting to inflation.
Such a coordinated adjustment means one clear thing:
👉 the market no longer adheres to the dominant macroeconomic thesis.
This signals internal tensions in the collateral system.
📢 The bond market is telling you, very explicitly, that something major is about to happen.