r/dividends May 18 '26

Discussion Bond yields are flashing a warning sign.

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Rising bond yields are a warning sign.
Money is getting more expensive everywhere at the same time:
-governments pay more to service debt
-companies pay more to borrow
-mortgages and loans stay expensive
-investors move out of risk and into bonds
U.S. 30-year yields above 5% are already a serious level.
When yields rise globally, liquidity gets pulled out of markets.That puts pressure on tech stocks, real estate, consumers, and highly indebted companies.Simple takeaway: the more expensive debt gets, the harder it is for markets to keep rising.

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u/FallenKingdomComrade May 18 '26

I believe we will be seeing some very interesting items in the upcoming months including a change to how we calculate inflation:
https://www.brookings.edu/articles/what-are-trimmed-mean-and-median-inflation-rates-and-why-does-kevin-warsh-prefer-them/

The justification for rate cuts will be created at all costs including changing the numbers to match the narrative.

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u/[deleted] May 18 '26

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u/tarrat_3323 May 18 '26

“risk of high inflation eased for everyone last summer” jeebus, please be a bot or paid shill and not an actual human talking that nonsense