Big Take Why Long-Term Bond Yields Are Up in the US, UK and Japan
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Sep 3, 2025 Jamie Rush, an expert from Bloomberg Economics, dives deep into the recent surge in long-term bond yields across the US, UK, and Japan. He discusses how inflation concerns and geopolitical tensions are impacting bond markets. The conversation reveals challenges like the UK's fiscal policy and its effect on investor confidence. Additionally, Rush highlights Japan's unique bond yield dynamics and the broader implications for global economic stability. It's a riveting exploration of why our world's financial landscape is shifting.
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Long Yields Signal Investor Confidence
- Long-dated bond yields have climbed significantly, especially at the 30-year horizon, signaling reduced appetite for tying up money for decades.
- Investors now read auction results as a direct barometer of confidence in governments' long-term prospects.
Central Banks Exiting Bond Markets
- Central banks reducing balance sheets (quantitative tightening) are flooding markets with bonds previously held on their books.
- That withdrawal of central bank demand is a major driver pushing yields higher across long maturities.
Country-Specific Drivers Of Yield Moves
- Japan's end of yield-curve control exposes long-term JGBs to market forces after years of BOJ support.
- The UK faces structural rotation as pension schemes mature and demand for long bonds weakens.