Free Republic

Consumers are about to feel the impact of soaring bond yields, Blackstone president Johnathan Gray told the FT. The yield on the 10-year US Treasury continued to rise on Thursday, edging closer to 5%. Higher bond yields are raising borrowing costs all over the economy, from mortgages to personal loans. American consumers are about to feel the sting of soaring bond yields, Blackstone president Johnathan Gray said. Bond yields, which impact borrowing costs for all kinds of loan products, moved higher this week as investors fretted over higher-for-longer interest rates. After notching a 16-year-record earlier this month, the yield on...

This week’s aggressive repricing in U.S. Treasuries is going global, with long-end borrowing costs from Germany to the U.K. sliding as traders brace for central banks to quell fears over rising inflation. The yield premium on 30-year German bonds over five-year equivalents narrowed to the lowest since March on Friday, while a similar gauge in Britain fell to levels last seen in January. It follows a plunge in long-term Treasury yields on Thursday, which sparked the biggest two-day flattening of curve since March 2020. The moves come after Federal Reserve officials on Wednesday signaled they could tighten monetary policy sooner...

Fear and uncertainty about the global economy are leading investors to embrace the relative safety of U.S. government debt and slashing yields to record lows. Interest paid on the 10-year Treasury note reached 1.38 percent late Tuesday, just below the previous record set in 2012. Historically, when concerns have flared about a potential recession, investors have shifted money into havens such as U.S. Treasurys and sent yields falling. The market’s signal this time seems somewhat hazier than usual, and there's far from any consensus among economists that a recession is approaching. As recently as the start of June, the yield...

Overview: US bond yields climb amid oversupply fears By Dave Shellock Published: February 9 2009 18:18 | Last updated: February 9 2009 18:18 US government bonds yields climbed to their highest levels for more than two months on Monday ahead of the Treasury’s record $67bn of issuance this week. Treasury bond climbed back above the 3 per cent level for the first time since late November. “If the market chokes on this supply, it might not only mean higher yields but it could start to weigh on the dollar,” suggested Steve Barrow, currency strategist at Standard Bank. “With foreign investors...