17 October 2023
US yields have been erratic due to mixed Fed signals and geopolitical tensions, adding to uncertainties about the Federal Reserve’s policy stability. As bond markets face headwinds, concerns about the future buyer base for US government debt rise. With the Fed reversing its bond-buying stance and foreign buyers showing hesitancy, the bond market’s resilience is under threat. The financial outlook is increasingly unstable, emphasizing the fragility of major financial systems.