Global bond yields are flashing warning signals to markets. Japanese 10-year bond yields hit highs not seen since 1997, following Bank of Japan minutes, revealing pressure to raise rates. UK Bond Yields spiked higher to levels not seen since the GFC, following the political turmoil that has ensued after the local elections resulted in a catastrophic defeat, for the incumbent Labour Government. PM Starmer is the lowest rating leader in history and looks certain to fall, his disastrous term in power, only leading to what looks like a monumental economic crisis. US inflation also spiked to an annualised 3.8%, as a direct result of the Middle East war, that has caused a global energy crises. The EUR held above 1.1700, while the GBP slipped to 1.3540, as the political crisis unfolds.
Commodity currencies suffered the resurgent reserve, with the AUD falling back to 0.7200 before rebounding to .7240. The NZD dropped below 0.5950 overnight but has since recovered. Eyes remain focused on the Middle East and the energy crises, materialising in global bond markets.
