Bond Selloff Fueled by Investor Panic, Not Fundamentals, Say Experts

The recent bond market selloff has been fueled by panic and investor fears about higher interest rates for longer, according to Wall Street experts.

The panic was sparked after Fed Chair Powell signaled rates would stay higher for longer at the September FOMC meeting.

Some say the selloff is disconnected from fundamentals, as factors like rising debt and recession fears are not new.

The surge in yields may be divorced from fundamentals, as US inflation is lower than countries with lower yields.

Rates are unlikely to stay this high for long, as inflation is already cooling quickly according to some measures.