Global Bond Selloff Triggers Financial Conditions Tightening Across Markets
A coordinated global bond selloff driven by renewed inflation fears has pushed long-dated yields to multi-year highs, with Japan's 30-year bonds hitting 4% for the first time since 1999. Fed Governor Barr's warning that inflation remains the "overwhelming risk" has markets pricing a two-thirds chance of December rate hikes, fundamentally shifting the macro backdrop for risk assets.
This represents a structural shift away from the ultra-low rate environment that fueled AI and crypto valuations, potentially constraining funding for digital transformation initiatives.
inflation
bond yields
monetary policy
interest rates