Macro & Markets: More upside to come for long end bond yields | Metals Mine

  • Macro & Markets: More upside to come for long end bond yields

    From corporate.nordea.com

    The topic of rising long end bond yields does not seem to pass any time soon. The perfect storm could become even worse with weaker USD-liquidity in the coming months. As the charts below indicate, it seems like most long end bond yields in major currencies are on the rise. It seems to be a rather large set of reasons behind this sell-off. Most countries have large deficits to fund already and/or are about to see them rise. Demographics turn super savers into super consumers, and changes to pension schemes like in the Netherlands amplify the lower demand for long end bonds. A factor here could of course also be that ... (full story)

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Trader#37FA
Sep 6, 2025 9:53am
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As bond yields rise, this puts pressure on stocks as yields become more attractive. Government bonds are considered to be much safer than stocks. So when they fall and the yields rise, you're getting guaranteed returns (more-or-less) while stocks are subject to all of that volatility and risk.

If you can average 10% on a very bumpy road or a bit less on a very smooth, consistent, reliable road which do you think you'd take?

Pundits will take the high risk route of course, others will go the safer way. Especially in times of turmoil and uncertainty.

Either way, this will put pressure on stocks as money flows out and into the safer/less risky high yield treasuries.
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