Bloomberg Surveillance · Tuesday, September 29, 2026
Ed Yardeni explains that a synchronized increase in bond yields, potentially starting last year, is partly due to the Bank of Japan's actions leading to an unwind of the global carry trade. He also points to algorithms that amplify bearish news, causing rapid increases in bond yields.
“The Bank of Japan is growing. raising interest rates, and that is causing an unwind of the global carry trade, which I think is affecting global bonds.”
“And so a lot of that is kind of a knee-jerk mechanical event. But at the same time, I think we also have these algorithms that'll take any news whatsoever that's out there, and some of that's been bearish, and kind of blow it up so we get these rapid increases in bond yields.”