Inflation's Unwelcome Guest: The Persistent Threat to Global Markets The recent sell off in global bond markets has underscored the reality that high inflation is no longer a fleeting concern, but a stubborn and persistent threat to global markets.
Demand for long term US debt has weakened significantly, prompting investors to prepare for the possibility of sustained elevated prices.
The Treasury Department's $25 billion auction of 30 year bonds earlier this week was a telling indicator of market unease. Yields soared to 5%, marking the first time since 2007 that such a high rate has been achieved.