{
  "id": 5213512,
  "title": "Global bond slump looks painful, but its nothing like the 2022 rout",
  "url": "https://urgent.news/2026/09/03/global-bond-slump-looks-painful-but-its-nothing-like-the-2022-rout",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T00:33:49.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/us-stocks/news/global-bond-slump-looks-painful-but-its-nothing-like-the-2022-rout/articleshow/133722728.cms"
  },
  "original_language": "en",
  "account": "While the recent decline in global bond markets is causing some distress, it is not nearly as severe as the sharp decline experienced in 2022. The primary difference lies in the scale of the drop. This time, global government bond yields have risen by 17 basis points over a 20-day period, whereas in 2022, the decline was much more pronounced, with yields falling by 62 basis points. Additionally, bonds have lost 4.2% of their value so far this year, a mere fraction of the 23% drop seen in 2022.\n\nDespite the ongoing sell-off, the relatively moderate rise in yields is providing some reassurance to experienced investors. Mike Goosay, head of fixed income at Principal Asset Management, suggests that the current volatility might be an opportunity to take advantage of long-term fixed income market prospects. The worsening outlook for global bonds was primarily driven by the rapid and widespread interest rate hikes implemented by central banks to battle inflation, especially after the pandemic-driven demand surge and the war in Ukraine.\n\nInflation continues to play a significant role in driving bond prices down. The Iran war and its impact on energy prices are adding to the pressure on bonds. Heavy government spending in major economies like Japan, the UK, France, and the US is resulting in elevated debt issuance, forcing investors to demand higher compensation for holding longer-term debt. Meanwhile, the surge in funds required to finance the AI boom is intensifying competition for capital and further pushing borrowing costs upward.\n\nHowever, the losses in bonds have been relatively contained due to the fact that yields are rising from higher levels, providing a larger income cushion against declining prices. In the Bloomberg Global Treasury Total Return Index, bonds currently carry an average coupon of 2.68%, a noticeable increase from 1.84% in 2022. Despite these positive indications, not everyone is convinced that bonds are a \"screaming buy.\" Stephen Miller, an investment consultant, acknowledges that while bonds could be worthy of consideration for income-oriented investors at these yields, it's not a time to rush into them.",
  "summary": "Global bond markets are experiencing a selloff, though less severe than four years ago. Current yield increases are smaller, providing some market reassurance and new opportunities. Heavy government spending and AI financing are adding pressure to bond markets. Higher yields offer investors a better income cushion against falling prices. Bond yields may still rise due to inflation and debt…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}