Global Bond Yields Surge: Why Rising U.S. Treasury Yields Could Pressure Stock Markets

Global bond yields are climbing sharply, raising concerns for equity markets and borrowing costs. U.S. 30-year Treasury yields have moved to their highest levels since 2007, while French, German, UK and Japanese yields are also elevated. Rising yields can increase borrowing costs for governments, companies and retail borrowers while putting pressure on bond prices and equities. Abhishek Basumallick, Co-founder & Fund Manager, Shree Rama Managers, says the spike in U.S. bond yields is an important reason behind recent weakness in equity markets. He also warns that persistent inflation and geopolitical uncertainty could push U.S. yields higher, adding to concerns around global markets and technology valuations.