Breaking Down the Global Bond Selloff

• Global bond selloff is pushing long-dated yields to multi-decade highs, influenced by fiscal concerns in G3+ nations and robust global growth.
• Japanese 30-year yields saw a significant overnight selloff, reaching levels not seen in two decades, making them more attractive to foreign investors after currency hedging.
• The US is losing its historical position as the highest-yielding option for some non-US investors, potentially leading to shifts in global bond allocations.

The global bond selloff continues, pushing long-dated yields to multi-decade highs, driven by challenging fiscal situations in major economies and persistent global growth. The analyst anticipates further yield increases, noting a shift in attractiveness for foreign investors as hedged Japanese bonds now offer competitive yields compared to US Treasuries.