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A bad start to the week for global bonds that continue to see yields rise higher given continued impasse regarding the Hormuz Strait. Initial hopes that maybe the meeting between President Trump and Chairman Xi would produce some kind of a breakthrough were dashed as the summit came and went without event.
US yields are climbing to their highest since 2024, UK yields are at 1998 highs and some Japanese yields have never been so high. All of this means Governments will have a harder time in the near future satisfying existing debt and creating new debt.
This issue, of the high and rising cost of debt, is much of the reason Keir Starmer is staring down the barrel of a P45 printed on House of Commons paper. The inability of the Government to take seriously fiscally expansive steps without jeopardizing stability is what has contributed to the left wing of his party aligning against him.
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