A bond selloff is rocking the world. You might want to take the other side.
Mint Mumbai|January 13, 2025
Wall Street is really worried about bonds. It might be time to buy some.
Jon Sindreu
A bond selloff is rocking the world. You might want to take the other side.

All Street is really worried about bonds. It might be time to buy some.

On Friday, a jobs report that blew past expectations pushed yields on 10-year Treasurys to 4.772%, the highest close since Nov. 1, 2023, and those on 30-year paper to 4.962%.

What is spooking markets, however, is that much of the recent rise in yields doesn't appear to reflect expectations of stronger economic growth. Rather, it might be the result of investors applying a higher discount or "term premium" to hold long-term bonds, estimates by the Federal Reserve suggest. Some analysts attribute this to the possibility of Donald Trump's promised tariffs derailing the global economy and leading to a jump in inflation, while his tax cuts bloat budget deficits further. Movements in term premiums are usually strongly correlated across the globe, and the consequences are being felt more starkly in weaker economies overseas, especially in Britain. There, 30-year yields are trading around 5.4%, a 27-year high. U.K. Treasury chief Rachel Reeves, who has made a public pledge to appease bond markets while also attempting to set out some moderate growth ambitions in her latest budget, is under strong pressure.

This story is from the January 13, 2025 edition of Mint Mumbai.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the January 13, 2025 edition of Mint Mumbai.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM MINT MUMBAIView All
NPS or EPF: Here's how you can incubate your nest egg
Mint Mumbai

NPS or EPF: Here's how you can incubate your nest egg

Employee contributions to EPF or NPS doesn't get any tax deductions under India's new tax regime

time-read
3 mins  |
February 19, 2025
Mint Mumbai

Iata Opposes IGI Airport's Variable Tariff Plan

The International Air Transport Association (Iata) has opposed Delhi International Airport's proposal for a variable tariff structure for five years beginning April 2025, saying the differential pricing structure is onerous and discriminatory.

time-read
1 min  |
February 19, 2025
Roadshows for LG's India IPO start
Mint Mumbai

Roadshows for LG's India IPO start

LG Electronics Inc. has started roadshows to meet potential investors in the initial public offering of its Indian unit, people familiar with the matter said.

time-read
1 min  |
February 19, 2025
Breather for importers, ports
Mint Mumbai

Breather for importers, ports

The Central Board of Indirect Taxes and Customs (CBIC) has introduced a new facility for accredited merchants to move, store, and clear imported goods at their authorized premises instead of at ports.

time-read
1 min  |
February 19, 2025
Mint Mumbai

ICICI Bank eyes 3% stake buy in Pru JV

ICICI Bank Ltd is considering buying additional shares in India's ICICI Prudential Asset Management Co. ahead of a potential listing of the business, according to people familiar with the matter.

time-read
1 min  |
February 19, 2025
Why debt resolution manpower is concentrated in metropolitan cities
Mint Mumbai

Why debt resolution manpower is concentrated in metropolitan cities

Professionals with skills in reviving sinking companies prefer to operate from the four metro cities of New Delhi, Mumbai, Chennai and Kolkata, official data from the Insolvency and Bankruptcy Board of India (IBBI) showed.

time-read
2 mins  |
February 19, 2025
India's mcap slips below ₹400 tn
Mint Mumbai

India's mcap slips below ₹400 tn

The market capitalisation of BSE-listed firms fell below the ₹400 trillion-mark on Tuesday as relentless foreign fund outflows and lower-than-expected corporate earnings continued to dent investors' sentiment.

time-read
1 min  |
February 19, 2025
Indians Among Illegal Migrants To Be Sent From US To Costa Rica
Mint Mumbai

Indians Among Illegal Migrants To Be Sent From US To Costa Rica

Central American Nation Joins Panama And Guatemala In Collaborating With US

time-read
2 mins  |
February 19, 2025
Mint Mumbai

Banking system's Goldilocks period is over: Uday Kotak

Kotak warns India's current account deficit is likely to come under pressure due to Trump's trade policies

time-read
1 min  |
February 19, 2025
Mint Mumbai

Reliance Launches 'Campa' in UAE

Reliance Consumer Products on Tuesday launched its home-grown cola brand, Campa Cola, in the United Arab Emirates, marking the brand's first foray into the global market dominated by US beverage giants PepsiCo and Coca-Cola.

time-read
1 min  |
February 19, 2025