In the US, the recent rise in bond yields is largely driven by structural factors like the end of the post-2008 Great Stagnation, higher potential growth from tech-industry investments, and greater private-sector demand for credit. Higher yields are more worrisome for advanced economies that are stagnating and innovating less.
NEW YORK—A sharp rise in bond yields across key economies like the United States, Japan, Germany, the United Kingdom, and France has raised new concerns about the fiscal and financial risks that lay ahead. A common view is that this bond “rout” could augur severe disruptions to economic growth and pain for US and global stock markets.
