Bonds Continue Selloff as Yields Rise Sharply
Government bonds are experiencing continued selloff, pushing yields on 30-year U.S. bonds to their highest levels since 2007 and reaching record highs in Japan. Similar trends are observed globally with Germany seeing its highest yield since 2011 and France near a two-decade high. The rise is attributed to increased government deficit spending, persistent inflation pressures from the Middle East conflict, tightening monetary policies, AI-related bond supply surges, and structural market shifts. In equities news, Home Depot (HD) reported better-than-expected Q2 earnings with strong same-store sales growth of 1.7%, leading its stock to rise by 2%. Nasdaq Inc. (NDAQ) announced plans for nearly around-the-clock trading starting in December if approved by the SEC. The market remains focused on interest rates rather than corporate earnings, which are currently subdued due to a quiet reporting period.
Topics: government bonds Home Depot earnings inflation interest rates Nasdaq trading expansion