{"id":1539397,"date":"2025-06-02T14:20:00","date_gmt":"2025-06-02T18:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1539397"},"modified":"2025-06-02T14:20:00","modified_gmt":"2025-06-02T18:20:00","slug":"bond-market-paradigm-shift","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bond-market-paradigm-shift\/1539397\/","title":{"rendered":"Bond Market Paradigm Shift?"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Bond Market Paradigm Shift?<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/realinvestmentadvice.com\/resources\/blog\/bond-market-paradigm-shift\/\"><em>Via RealInvestmentAdvice.com,<\/em><\/a><\/p>\n<p><strong>Some bearish bond investors in Japan and the US appear to believe that a paradigm shift is underway\u00a0in the sovereign bond markets. <\/strong><\/p>\n<p>To wit, consider the following statement from Jim Bianco on Thoughtful Money:\u00a0<\/p>\n<p>\u201c<em>If these deficits are really going to kick in and cause problems, these rates are going to go much higher than this.\u201d<\/em>\u00a0<\/p>\n<p>The bond market paradigm shift we observe is that some people believe the governments and central banks of the largest nations are no longer managing interest rates.\u00a0<\/p>\n<p><strong>For those who believe in this paradigm shift, we ask a simple question: Why Would They Stop Now?<\/strong><\/p>\n<p>The governments and central banks of developed countries have long-standing policies that keep high levels of public and private debt serviceable.<\/p>\n<p>Moreover, these same policies aim to incentivize further debt accumulation.<\/p>\n<p><strong>The bearish voices in the bond market, claiming a paradigm shift is underway, show a disregard for history. <\/strong><\/p>\n<p>Bond bulls and bears can all agree that global fiscal debt trends are not sustainable.<\/p>\n<p><strong>However, do you think the governments are now willing to pay the price for such malfeasance?<\/strong><\/p>\n<p>Two years ago, the Japanese government uncapped its interest rates, and not surprisingly, they have surged higher.\u00a0<\/p>\n<p><strong>However, with their 30-year bond approaching 3%, they announced that they are considering adjusting their debt issuance patterns.<\/strong> As shown below, its 30-year bond fell 35 basis points after the announcement.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/japan-bond-yields-1024x748.jpg?itok=x1vzE-ki\"><\/a><\/p>\n<p><strong>Bond yields in the US and around the world fell in sympathy. <\/strong><\/p>\n<p>Governments around the world will preserve their debt-driven financial systems and economies by keeping a lid on interest rates.\u00a0<\/p>\n<p>Again, ponder the one simple question if you believe in the paradigm shift: <em><strong>why would the governments and central banks stop manipulating the bond market now?<\/strong><\/em><\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Mon, 06\/02\/2025 &#8211; 10:20<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/markets\/bond-market-paradigm-shift\" target=\"_blank\" class=\"\">https:\/\/www.zerohedge.com\/markets\/bond-market-paradigm-shift<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bond Market Paradigm Shift? Via RealInvestmentAdvice.com, Some bearish bond investors in Japan and the US appear to believe that a paradigm shift is underway\u00a0in the&#8230;<\/p>\n","protected":false},"author":0,"featured_media":1539398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1539397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6ssZ","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/06\/japan-bond-yields-1024x748-p3Q306.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1539397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1539397"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1539397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1539398"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1539397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1539397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1539397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}