bond yields

The Fed raised interest rates, bond yields broke 5%, and a barrel of crude oil … well, it’s just getting more expensive.

Oil prices that top the $100-per-barrel mark have downstream effects on all kinds of things. Bonds are among them.

The sheer amount of borrowing by countries covering budget deficits and tech companies building AI infrastructure is pushing rates higher.

The same forces that have been pushing mortgage interest rates higher are likely to do the same to business loans.

High levels of U.S. debt and competition from tech companies issuing their own bonds are driving the high yields.

The war in the Middle East is pushing up short-term government yields, on expectations that the Fed is increasingly likely to hike interest rates over the next two years.

Companies are issuing record amounts of corporate debt this year, even though the war pushed up yields. Analysts say that could continue, especially as tech companies finance AI projects.

The war in the Middle East is pushing up inflation in the short term, but longer-term expectations are tamer. That’s relieved pressure on long-term bonds, though that could change if the war escalates.

On Monday, bond traders weren’t exactly rushing for a safe haven.

These corporate bonds could end up competing for the same money that might otherwise go into U.S. Treasuries. That could drive interest rates higher.