Why Interest Rates Are Shooting Up All Around the World

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 22 May 2025

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week the big story in markets is the selloff in bonds. Yields on benchmark 10-year US Treasuries jumped 20 basis points from last Friday’s low, while the 30-year rate is back above 5%. Meanwhile, 30-year Japanese government bonds clocked their highest yield since records began in 1999. And rates on UK gilts, German bunds, and Australian bonds are also rising. To make matters even more unusual, US Treasury yields are going up while the dollar is weakening (something that doesn’t usually happen.) So what’s going on? And how much does this have to with worries over the US fiscal position, the return of inflation, and the outlook for rate cuts from the Federal Reserve? On this episode, we speak with Steven Englander, global head of G-10 FX research at Standard Chartered. We talk about what’s driving the dramatic moves and the relationship between fiscal and monetary policy.

Read more:
Deglobalization’s Threat to the Bond Market
US Bonds Swing as Dip Buyers Enter After Moody’s-Fueled Selloff

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0:40.1	Bloomberg Audio Studios, Podcasts, Radio News. Hello and welcome to another episode of the Odd Thoughts podcast.
0:59.3	I'm Tracy Alloway.
1:00.3	And I'm Joe Wisenthall.
1:01.9	Joe.
1:02.6	How about them JGB yields?
1:05.0	So this is the thing, which is that in some sense, the markets have quieted down, certainly compared to early April or mid-April.
1:12.3	But there are some major moves still happening, particularly in rates, some currency stuff.
1:19.5	If you know where to look, these markets are not boring at all.
1:22.5	I don't even think you have to like actively go looking for interesting moves.
1:26.3	So we're recording this on May 20th,
	...

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