Search
 

Global Bond Tantrum Is Worrisome

The relentless rise in government bond yields in the United States and around the world may represent the “new normal” for both investors and companies.

By Michael Mackenzie and Ye Xie | January 15, 2025 at 04:50 PM
The Marriner S. Eccles Federal Reserve building. Photographer: Stefani Reynolds/Bloomberg.

For those unsettled by the relentless rise in government bond yields in the United States and across much of the world lately, the message from markets is getting clearer by the day: Get used to it. The world’s biggest bond market and global bellwether is leading a reset higher in borrowing costs, with the prospect of a prolonged period of elevated rates carrying consequences for economies and assets everywhere.

Just days into 2025, yields on U.S. government debt are surging as the risks to supposedly super-safe assets mount. The economy continues to power ahead, while the Federal Reserve is rethinking the timing of further interest rate cuts and Donald Trump is returning to the White House with policies prioritizing growth over debt and price fears, as borrowing has soared.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2025 ALM Global, LLC. All Rights Reserved.