r/economy • u/HelFJandinn • 1d ago
Bond market rout puts global economy on financial crisis 'trajectory'
https://www.abc.net.au/news/2026-09-08/bond-markets-interest-rates-mounting-risk-global-economic-crisis/107123348•
u/Eastern-Joke-7537 1d ago
Don’t buy bonds
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u/Excellent_Rock4296 19h ago
Ya but why though?!
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u/Eastern-Joke-7537 19h ago
Bonds could crash. But that might not necessarily be bearish for anyone else.
Bond investors might just move into stocks or real estate.
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u/Retired-Yam8988 18h ago
That’s what I was thinking. If you can’t buy bonds, where do you go? Gold? RE? AI bubble getting bubblier?
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u/FuraidoChickem 17h ago
Even gold is all time high. Anyway I’m gonna default to holding cash and stuff them up FD before mid term
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u/SpeakCodeToMe 17h ago
Inflation is inevitable, cash will fuck you just as hard as anything else.
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u/Excellent_Rock4296 19h ago
So here’s what I don’t understand. If bond yields are rising, that means so are investor returns. In the current environment, holding bonds short term may be advantageous: E.g. a conservative place to park your money while you wait for the inevitable market correction/downturn/crash that’s likely coming. That said, if I’m way out in left field on this, please correct me. However, this is how I’ve understood it to work.
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u/Retired-Yam8988 18h ago
Yields rising means current bonds drop in value - why would you buy an older bond with a locked in lower rate? You’d just buy the new issue with the higher rate. Older bonds that everyone holds now go down in value since you have to entice people to buy them from you against the higher rate issuances.
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u/Rugaru985 14h ago
Yes, but if you can tell me the very last day before that starts going in the other direction, I would appreciate it.
I’m looking for both high yields AND high value. Thanks.
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u/royalpyroz 12h ago
What about James Bonds?
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u/Liminal_Aspect 23h ago
Golden…. Absolute golden age, I tell ya
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u/happymancry 23h ago
Gilded.
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u/Liminal_Aspect 23h ago
Just so so Gilded, the absolute Goldest, many people say it - did you hear this? Have you heard what people are saying? Just the most golden of economies, so Big and Powerful, not small, no no, so very Big! The most golden and gilded of big beautiful economies! THANK YOU FOR YOUR ATTENTION IN THIS MATTER!
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u/_ehwaz 21h ago
All this fear and it’s just going to be a slow grind up with rates and a slow grind down with assets (and tougher economy). Wish I could make money off it but next 5 years will just suck unless AI creates enough new jobs or lowers prices…
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u/BayouGal 20h ago
Spoiler - AI isn’t creating jobs.
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u/Rugaru985 14h ago
Not true. My grandson has employed dozens of new “AI Models” down in the basement. They telecommute in for what sounds like an earth shattering exercise routine. This house hasn’t rocked like this since Craig bought me those shake weights.
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u/AreWe-There-Yet 23h ago
Chickens coming home.
Saying this without any glee, since I know we’re all going to get hurt