Yields on High: Inflation's Unwelcome Ally in the Bond Market Global bond yields have surged to multi year highs, driven by inflation and oil prices.
This trend should prompt policymakers to take notice, as it signals that inflation is no longer a distant threat but an unwelcome reality already affecting financial markets.
The current situation bears some resemblance to the early 1980s, when President Ronald Reagan faced high inflation. At the time, rising bond yields were seen as a warning sign of impending monetary tightening.