Global Bond Yields Are Rising: Here's Why Traders Need to Pay Attention

In our latest episode of _Market on Close_ [https://www.youtube.com/watch?v=kNZ4egQUkxI], John Rowland, CMT, answered a question from “Twitter Tom” about global bond yields and why traders and investors should care. His response was a warning — and a lesson about the Federal Reserve.

SHORT-TERM CUTS ≠ LOWER RATES

Central banks around the globe have been cutting short-term interest rates. But long-term bond yields are still climbing. Why?

* Long-term rates impact consumer loans, mortgages, corporate debt, and government borrowing far more than short-term rates.
* Higher yields mean higher borrowing costs, which can ripple through global economies and financial markets.

THE SUPPLY SIDE: MORE DEBT ISSUANCE

Governments, particularly in Europe, are facing increased deficit spending and higher defense budgets. That means more bond issuance. More supply → lower prices → higher yields.

THE DEMAND SIDE: RELUCTANCE TO BUY

At the same time, we’re in the longest drawdown in government debt demand in history — 61 months. Investors across G7 markets have been hesitant to buy bonds.

More supply + less demand = falling bond prices. And when bond prices fall, yields rise.

WHY TRADERS SHOULD CARE

* Rising yields can pressure equities, particularly growth and tech stocks, as borrowing costs rise.
* Higher long-term yields also compete with stocks and risk assets for investor capital.
* Yield curves shape everything from bank lending to currency values.

For traders, this means yields aren’t just “background noise.” They’re market drivers.

TOOLS TO STAY AHEAD

* Use the Economic Calendar [https://www.barchart.com/economy/calendar] to track upcoming inflation releases, central bank meetings, and other key yield-moving events.
* Check Treasury Yields [https://www.barchart.com/economy/overview] and compare maturities to spot curve shifts that may hint at equity rotations.
* Monitor sector ETFs with Barchart’s ETF Screeners [https://www.barchart.com/etfs-funds/etf-monitor?viewName=main] to see how rising yields are impacting banks, utilities, and tech.

BOTTOM LINE

Bond yields are more than a macro headline; they’re a pulse check for the entire market. More debt issuance, less demand, and sticky inflation mean higher yields may be here to stay.

Watch the clip here: [https://youtube.com/shorts/BDIMd71DyG0] 

Stream the full _Market on Close_ episode [https://youtube.com/live/kNZ4egQUkxI], and turn on notifications [https://www.barchart.com/education/market-on-close] so you don’t miss the next live show.

_ On the date of publication, Barchart Insights [https://www.barchart.com/news/authors/456/barchart-insights] did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here [https://www.barchart.com/terms#disclosure]. _