Global Bond Selloff Pushes US Treasury Yields Higher

Bond prices and bond yields move in opposite directions.

When many investors sell bonds, their prices fall and their yields rise.

Investors are selling because they think interest rates may stay high for longer.

High oil prices are making inflation harder to control, which limits the Federal Reserve’s ability to cut rates.

The United States is also borrowing more money and spending more to service its debt.

That can make investors demand higher returns for buying government bonds.

Japanese investors might prefer domestic bonds if returns in Japan improve.

Some central banks are also holding more gold instead of US Treasuries, which could further weaken demand.