Bonds and Builders

We're all watching bond yields at the moment.

And what happened last night?

Well, they just keep rising, Alan.

The Bloomberg Global Bond Index is up at the highest point it's been since 2008, the middle of 2008.

We've got Australian bond yields at 15-year highs.

We've got US 10-year bond yields at the highest point of Trump's second presidency.

French bond yields at the highest point since 2008.

German bond yields at the highest point since 2015.

British bond yields at the highest point since 2008.

And Japanese bond yields on the 10-year bond yield is at the highest point since 1996.

Yes.

So this is a pretty sustained move that the – Yeah, there's a lot of different factors.

Obviously, there's the longer-term factors like governments have got too much debt around the world.

Then last Friday, we had Kevin Walsh, the new Fed chairman, give a speech at Jackson Hole where the Fed have their annual sort of conference and reaffirmed how committed he is to fighting inflation.

So that's pushed up expectations of a rate hike in the US later this month.

And then we've had the resumption of hostilities in Iran after a sort of month of no attacks.

Trump's bombing things again.

Oil prices are up about 10% in six days.

And so that's feeding through to bond yields as well.

And, you know, this pushes up the cost of borrowing for everybody in the economy, households, businesses, well, and governments too.

So it's starting to, you know, really...

This is a generational move in bond yields.

There's no other

way.

We probably should explain a bit what's going on here because with shares, as I explained on the news last night, with shares we watch the price.