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Global crises shift focus back to higher bond yields

With wars, trade wars, and crop failures altering risk and growth outlooks, the case for higher yields centers on bonds offering less “protection” than in past regimes, per WSJ Markets.

Reported · Written up by our desk · Economy

WSJ Markets argues that when crises keep piling up, investors should expect to see bond yields remain higher than they were during calmer periods.

The outlet points to a mix of factors including wars, trade wars, and crop failures as drivers of a less stable environment for markets and the broader economy.

In that context, it says bonds can look more attractive when yields are higher, because fixed income is offering relatively less protection than it used to provide.

The piece frames the shift as a fundamental change in how investors evaluate risk, relying more on yield levels rather than the traditional “safety” of bonds.

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