Why global bond markets are convulsing

Almost in every single place, government-bond yields are rising quick. These on ten-year American Treasury bonds are nearly 5%. German bunds now provide 2.6%, up from near 2% in December. Japanese bond yields are climbing. Issues are significantly excessive in Britain, the place gilt yields just lately reached nearly 5%, their highest since 2008 (see chart 1). Rising yields are unhealthy information for governments, which should pay extra to service money owed. They’re additionally painful for all types of different debtors, together with many mortgage-holders, whose payments in the end depend upon governments’ borrowing prices.