Hidden Forces What’s Driving the Rise in Long-Term Bond Yields? | Jim Bianco
63 snips
Jan 20, 2025 
Jim Bianco, President and Macro Strategist at Bianco Research, delves into the recent surge in long-term bond yields driven by Federal Reserve policy and inflation concerns. He discusses the implications for the traditional 60/40 investment strategy and potential risks amid economic uncertainties. The conversation also highlights the strength of the U.S. economy relative to Europe and China, explores the impact of tariffs, and examines the interplay between interest rates and consumer behavior in today's market.
AI Snips
Chapters
Transcript
Episode notes
Unusual Bond Market Reaction
- Long-term bond yields are rising during Fed rate cuts, indicating market disapproval.
- This suggests a fear of economic overheating and inflation due to excessive stimulus.
Factors Affecting Bond Yields
- Multiple factors influence bond markets, including deficits, tariffs, and economic growth expectations.
- However, the Fed's rate cuts likely triggered the recent upward shift in long-term yields.
Global Bond Market Trends
- Rising bond yields are a global phenomenon, potentially driven by higher inflation expectations.
- Germany's economy is struggling due to energy costs, while China's faces declining bond yields and low growth.