Another morning, another move higher in bond yields. The U.S. 10-year Treasury yield is now making moves towards 4.7%. The 20-year just hit 5%. These moves are not happening in response to better economic data. They are happeningTake Germany, whose 10-year yields just hit a fresh twelve-year high...even as their economy has beenand the outlook is so poor that it's causing national agita;"The sick man of Europe is back," and so forth.
Germany is actually a key example of what's going on with surging yields globally. They put all their chips on an energy transition that is now resulting in structurally higher energy costs and hollowing out their once-vaunted industrial base. Worse, their own domestic auto makers were caught off-guard as Tesla and Chinese brands have led the transition to EVs.
Here in the U.S., the envy of the world for our own cheap and plentiful natural gas supplies, we have echoes of the same problem. The price of U.S. benchmark crude oil hit $93 a barrel yesterday after we got word that key storage facilities in Cushing are at . This will keep upward pressure on gasoline prices, which has already dented consumer confidence, and will continue nudging the CPI higher.Sign up for NBC Philadelphia newsletters.One may ask if policy makers fully thought through the various implications to markets, and in turn the economy, of their domestic energy priorities and policies before implementing themAnd the cost of funding the energy transition is just one of several reasons why global debt issuance has been soaring.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »