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Viewsroom

Bond chaos induces headaches worldwide

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 16 January 2025

⏱️ 21 minutes

🧾️ Download transcript

Summary

Rising yields on long-term US debt, now around 5% despite the Fed’s cuts, are having ripple effects across the globe. Leaders in Britain and beyond may be forced to rethink their policies. In this Viewsroom podcast, Breakingviews columnists explain the potential pain in store. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:03.2

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Indeed.com slash SPANUK. Terms and conditions apply. The views expressed on this podcast are those of the

0:31.1

participants, not of Rogers News. Treasury yields edged higher with the benchmark 10-year note yield touching a 14-month

0:42.6

high above 4.8%.

0:45.4

Markets are currently pricing in one rate cut from the Fed this year, as inflation remains

0:50.1

above the central bank's target, and the economy continues to grow at a healthy clip.

0:55.0

Yields on long-dated British government bonds are at their highest in decades.

1:03.0

That's put government finances under pressure, while Sterling is struggling and British domestic stocks are underperforming.

1:10.0

Bond yields are surging across the and British domestic stocks are underperforming.

1:19.0

Bond yields are surging across the UK, Europe and US. Investors are fretting about President-elect Donald Trump's policies around tariffs and tax cuts, which could drive up

1:24.1

debt and inflation. While in the UK, there are concerns that the country's finances

1:28.5

are not under control. How this unfolding situation will play out and how it could influence policy

1:35.0

is the focus of this week's Views Room. Welcome back to the Views Room, the weekly podcast that

1:42.5

invites you the listener into a lively debate with Breaking Views columnists. And podcast that invites you, the listener, into a lively debate with breaking views columnists.

1:46.5

And I'm your host, Amy Dunlman.

1:48.3

And I'm Jonathan at this is there is a line that is the 20 yield.

2:18.9

It keeps flirting around that 5% mark, despite the fact that we've had multiple Fed cuts.

...

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