Bond Market Selloff Raises Questions About Sustainability of Global Stock Rally
Source Summary
Long-dated government bond yields have surged to near two-decade highs as investors worry about inflation and fiscal deficits. Global stock prices have largely ignored the bond market selloff despite these rising yields. Sovereign bonds are competing with an AI-driven corporate borrowing boom for investor capital.
Why it matters
Rising bond yields and investor concerns about inflation and fiscal deficits could pose a risk to the equity market rally if the disconnect between bond and stock markets narrows.
