Global Bond Market Faces Significant Sell-Off

Global bond markets are experiencing a significant sell-off as traders reassess the Federal Reserve's interest rate cut trajectory, driven by strong economic data and the potential for a Trump victory in the upcoming election. U.S. Treasury yields have surged, with the 10-year yield reaching its highest level since July at 4.22%, prompting a reevaluation of aggressive rate cut expectations. This trend has spread internationally, with yields on Australian, New Zealand, and Japanese bonds also rising sharply. Analysts suggest that the Fed may keep rates unchanged in its next meeting, despite some officials advocating for modest cuts. The stock market has reacted negatively, with the S&P experiencing its worst loss in seven weeks, and all major tech stocks declining. The rising dollar further compounded the situation, exerting downward pressure on gold prices after an initial high.