Global bond yields took a big leg up on Wednesday, with the US 10-year Treasury now well north of 5 per cent. Could further rises trip up a heavily indebted government? Or perhaps an overleveraged hedge fund, with untold market fallout? Hosts Katie Martin and Rob Armstrong are joined by FT senior markets correspondent Ian Smith. Plus, Rob goes long his own foresight, while Katie extends a long arm of comfort to a banker who sent a career-ending email. For a free 30-day trial to the Unhedged newsletter go to: https://www.ft.com/unhedgedoffer. You can email Robert Armstrong and Katie Martin at unhedged@ft.com. Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.

Bond bombshell

Unhedged

[SPEAKER_03] Buckle up, folks, because the wheels are coming off in the government bond markets and it is not pretty. As all good faithful listeners to this podcast know, bonds have been weakening for some time. And as they also know, this pushes borrowing costs higher and higher for all of us everywhere. Governments, companies, ordinary mortals like us getting loans and mortgages. Proof, once again, that if you think markets and real life are separate things, you are very much doing it wrong.

[SPEAKER_03] Anyway, earlier this week, the drip, drip of sliding bond prices turned into a bit of a torrent. We had the biggest drop in US government bonds that we've had since Donald Trump's Liberation Day last year when he unleashed trade tariffs on the world. The 10-year yield or borrowing cost for the US government has now vaulted well above 5%. This is bad, OK? So today on the show, the bond bombshell and why it matters.

[SPEAKER_03] This is Unhedged, the markets and finance podcast from the Financial Times. I'm Katie Martin, a markets columnist locked in the bunker at FT Towers in London. Joining me in the studio, very unusually, in fact, for the first time ever, is the big fella, Rob Armstrong.

[SPEAKER_00] Hi, Katie.

[SPEAKER_03] Who let you in?

[SPEAKER_00] I don't know. My old card from when I worked here seven years ago still works to get in the door. Snuck in. Sliped in unnoticed.

[SPEAKER_03] No one will notice, don't worry. But also with me in the studio is Mr Ian Smith, one of the hardest working people at the FT, thrashing out markets news in our London headquarters. Ian, how are your nerves?

Bond bombshell

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Bond bombshell

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.