Rising bond yields threaten to upend stock rally, deVere CEO warns
View original at seekingalpha.comRising bond yields threaten to upend stock rally, deVere CEO warns [I Bonds, Treasury Bond] Douglas Rissing A sharp rise in global bond yields is beginning to challenge the stock market rally that has been fueled by artificial intelligence enthusiasm and years of easy monetary policy, according to a report by Nigel Gre…
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Markets increasingly recognize that the old ultra-low inflation era is over, driven by trade fragmentation, tariffs, defense spending, labor shortages, and heavy investment in AI infrastructure.
60% confidenceFor more than a decade markets operated in an era dominated by artificially cheap money, a world that is disappearing rapidly as investors now secure 4%, 5% and higher yields in sovereign debt and investment-grade fixed income.
60% confidenceStrong earnings and AI optimism have kept markets moving higher but leadership has narrowed significantly, and bond markets are now testing whether equity valuations remain sustainable in a world where capital is no longer effectively free.
60% confidenceRising bond yields increase competition for investor capital, potentially pulling money away from equities into bonds that now offer more attractive returns with lower volatility.
60% confidenceHigher bond yields can tighten financial conditions by increasing borrowing costs for consumers and businesses, with mortgage rates remaining elevated and refinancing costs rising for corporations.
60% confidenceGovernments are issuing extraordinary amounts of debt at precisely the moment inflation risks are becoming entrenched and investors are demanding higher compensation to lend, and bond markets are beginning to challenge the entire foundation of the equity rally.
60% confidenceFixed income has become genuinely attractive again; investors are once again being paid properly to own sovereign debt.
60% confidenceGovernments and corporations will borrow roughly $29 trillion from capital markets in 2026.
60% confidenceGlobal public debt reached nearly 94% of world GDP in 2025 and could approach 100% by 2029.
60% confidence