Yields Surge, Markets Shift

24-may, 2025

A sharp rise in bond yields has prompted a reassessment of interest rate expectations, driving asset reallocation across equities, currencies, and fixed-income markets.

A sharp rise in bond yields reflects changing expectations around inflation, growth, and central bank policy. Higher yields pressure equity valuations, strengthen currencies, and increase borrowing costs.

Financially, this drives asset reallocation and volatility across markets. In the bigger picture, rising yields mark a departure from ultra-low-rate regimes, signaling a structural shift where capital becomes more expensive, fundamentally altering investment strategies and risk pricing.