Why bond yields are rising and why everyone should care
Rising bond yields are one of the few forces in the world strong enough to get politicians to snap to attention. They can also have a big impact on Americans’ personal finances and on the broader economy. The bond market can dictate how much ordinary people have to pay on their mortgages and car loans, as well as how much they earn from their savings accounts and 401(k) plans.
Fighting has flared up again in the Middle East, causing oil prices to jump and renewing inflation worries. Investors typically demand higher interest rates, or yields, on government bonds when inflation is high or they think it may get worse.
