{"id":16174,"date":"2025-07-17T10:55:07","date_gmt":"2025-07-17T10:55:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/16174\/"},"modified":"2025-07-17T10:55:07","modified_gmt":"2025-07-17T10:55:07","slug":"global-yields-on-the-rise","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/16174\/","title":{"rendered":"Global yields on the rise"},"content":{"rendered":"

Expansionary fiscal policies in Germany and the United States, as well as the prospect of greater government spending in Japan, have pushed long-dated yields higher in global fixed-income markets\u2014a marked contrast to the bullish sentiment in equity markets.<\/p>\n

Still, even as long-dated yields have risen, the MOVE index, which provides real-time information on interest rate volatility, has remained tame, which is another example of investor complacency<\/a>.<\/p>\n

Get Joe Brusuelas\u2019s Market Minute economic commentary every morning. Subscribe now<\/a>.<\/p>\n

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Government debt issuance, though, is set to increase later this year as advanced economies seek to fund expansionary fiscal policies.<\/p>\n

These broader trends suggest that the MOVE index will eventually increase in a reflection of rising policy uncertainty, increasing interest rate risk and, possibly, greater economic stress.<\/p>\n

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A host of factors are driving interest rates and inflation higher around the world:<\/p>\n

Increased government spending to accommodate aging populations.
\nTax cuts in the United States.
\nThe release of the German debt brake to fund additional military spending.<\/p>\n

In addition, investors are concerned about the direction of Japanese bond issuance and who will purchase those notes. Already, the Bank of Japan owns 52% of the outstanding Japanese bonds.<\/p>\n

While not on the radar of most investors, Japanese bond issuance and the Bank of Japan\u2019s bond purchases have been an anchor of global yields over the past few decades.<\/p>\n

Should the upcoming Japanese election result in increased government spending, the idea of who will purchase that debt will most likely push yields higher in Japan and elsewhere.<\/p>\n

It\u2019s part of the global regime change in fixed income prices, interest rates and monetary policy, which is the foundation of our U.S. and global economic outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"Expansionary fiscal policies in Germany and the United States, as well as the prospect of greater government spending…\n","protected":false},"author":2,"featured_media":16175,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":{"0":"post-16174","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/16174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=16174"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/16174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/16175"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=16174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=16174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=16174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}