Good morning. Another day, another twist in the bond markets. One thing CEOs don’t usually do in the face of a global bond selloff is buy gold. Although, given the decline in bond prices over the last few days, adding some gold to your balance sheet suddenly looks like a good idea.
With 30-year U.S. Treasuries hovering above 5% at one point this week and long-term bond yields rising in the U.K., France, and Japan, leaders are facing tough choices when it comes to managing risk, liquidity, and volatility.
The bond markets have been skittish for a while, serving as both a check on White House fiscal policies and a warning signal that America’s economic strengths are being put to the test. Investors are demanding higher returns from governments that aren’t doing enough to address rising debt.
When asked, most of the leaders I talk to expect their borrowing costs to trend up, not down, in this environment. Among other…
