BONDS ARE GETTING HAMMERED
The global bond selloff is deepening, with US Treasury yields jumping to levels not seen in years.
WHAT’S DRIVING IT?
• US 10-year yield surged to 5.11%, its biggest one-day jump since April 2025
• US 5-year yield crossed 5% for the first time since 2007
• Strong US economic data is reducing hopes for rate cuts
• Traders are now pricing in three more Fed hikes over the next year
• Weak demand at a US Treasury auction added more pressure
THE PAIN IS SPREADING
Japan’s 10-year yield hit its highest level since 1996, while Australian and New Zealand bond yields also jumped.
Higher yields mean higher borrowing costs for companies, mortgages and governments, while also putting pressure on stock valuations.
METALS UNDER PRESSURE
• Gold held onto losses after falling 1.7% in the previous session
• Bullion traded around $4,290 an ounce
• Rising interest rates are making non-yielding gold less attractive
CORPORATE NEWS
• Meta unveiled a palm-sized device designed to bring its Muse AI assistant into a dedicated gadget
• Disney is raising prices on several US streaming plans, with its subscription hikes continuing
• McDonald’s is committing around $8.5 billion to improve food, service and restaurant operations
THE BIG MARKET QUESTION
If rates keep climbing, how much more pressure can stocks take?