Japan’s 40-year bond yields surpass 4% for 1st time
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U.S. Treasury yields climbed as renewed trade tensions and fiscal concerns rattled bond markets, pushing borrowing costs higher for households and businesses.
The selling spree cast doubts on the perceived stability of the debt-ridden nation.
A sell-off in Japanese government bonds was part of a one-two punch hitting markets on Tuesday, alongside Trump's latest Greenland threats.
The rise in Japanese bond yields is an "explicit warning" that the US could see its own bond market revolt, Ken Griffin said.
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Stocks plunge on Greenland crisis and soaring bond yields
Rising geopolitical tensions between the US and Europe over control of Greenland have led to a risk-off mood in asset markets. President Trump’s push to take over Greenland is reviving fears of trade confrontations between the US and its European allies,
The 4% popular annual withdrawal rule was first formed during a period when interest rates felt relatively stable, and bonds were able to provide meaningful income without taking any kind of excessive risk.
“I think there’s an explicit warning that if your fiscal house is not in order, the bond vigilantes can come out and retract their price,” Ken Griffin told an audience at Davos.
TOKYO, Jan 23 (Reuters) - The Bank of Japan is set to keep interest rates steady on Friday and signal cautious optimism that the economy will maintain a moderate recovery that would justify raising still-low borrowing costs further.
Bond yields have edged down on expectations of a Federal Reserve rate cut next week, and they may drift lower if the economy sours. If you need income from your portfolio, it may be time to start making adjustments. The Fed has kept its benchmark rate on ...
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