Yields rise after latest CPI data

Bond Market Overview - The US is cutting interest rates while the Bank of Japan has raised rates to 30-year highs, impacting global yields [1] - The 10-year and 30-year bond yields are reaching multi-decade highs due to these changes [1] Economic Sentiment - The University of Michigan sentiment index reported a historically low current situation score, the lowest since the 1970s at 52.9% [2] - This low confidence level typically correlates with declining equity markets, yet equities are currently rising, indicating a disconnect [3] Inflation and Market Reactions - Recent CPI data has been deemed inaccurate, yet the market seems to overlook this, with yields on both 2-year and 10-year bonds increasing [4][5] - The French 10-year bond yield closed at 3.61%, marking a 14-year high, while the Japanese 10-year yield surpassed 2%, a 26-year high [6] Global Interest Rate Trends - The tightening of global monetary policy, particularly from Japan, is affecting investment strategies and arbitrage opportunities worldwide [7]