Fast-Rising Bond Yields Spark Concerns of Economic Slowdown as Central Banks Hike Rates

Rising bond yields globally are raising concerns about economic risks as central banks hike rates to curb inflation.

The pace of the bond yield increase has been very rapid, even as central banks signal rate hikes are nearing an end.

There are spillover effects possible, like budget strains in emerging markets that could create crises.

Unanticipated tightening of financial conditions from the bond moves could slow growth by straining budgets.

The big risk is if bond yields keep rising quickly, leading to insolvencies or fire sales that reverse economic growth.