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Last night saw a big move in global bond yields. The trigger was the return of European inflation in May registering an overpowering 0.3% on the year:

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That sent German bunds into a tizzy with the long end flogged 21bps (or 40%) to 0.71%:

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The US followed despite weak data on the night and its yield up trends now look solid if muted across the curve as we approach a tightening Fed:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.