Bond yields have increased globally, indicating a shift in investors' expectations for the world economy. Long-term bond yields have reached 5% in the US and UK, close to 3% in Germany, and even Japan's traditionally low rates have seen upward pressure. Higher bond yields suggest anticipated higher central bank interest rates, which have various implications for the economy.
Economists have stopped waiting for interest rates to drop because it doesn’t seem to be coming. The upward pressure on long-term bond yields suggests that this situation could last for a while. How should the world adjust? Israel’s economy might be in good enough shape to withstand the next few months, but a longer war won’t come cheap (12:00). And, Jilly Cooper’s sexy new book (18:55).
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