AI-Led Economic Boom Driving Yields Higher In US As Japanese Yields Continue To Normalize

Several factors are driving bond yields higher worldwide (chart). The war in the Middle East in March boosted yields amid concerns that soaring oil prices would revive inflation. The war, along with other geopolitical crises, is bound to increase defense spending and widen already bloated government deficits.

Central banks are increasingly pivoting from easing to tightening their monetary policies (chart).