🚨 THIS SHOULD NOT BE HAPPENING Bond yields are going absolutely crazy. We’re watching a synchronized, global explosion in yields. – US 30Y hitting 4.9% – Australia 5Y up >2% – Japan 10Y breaking out This never happens in a stable economy. In finance, we look for correlation. Usually, idiosyncratic risks stay local. But that’s not what is happening today. Why are we seeing extreme statistical events across every major sovereign bond market at the same time? Because this is about the system’s mechanics. Long-term rates say something about the credibility of states. That is, their ability to honor future debts without resorting massively to inflation. Such a coordinated adjustment implies the market is no longer buying the dominant macro thesis. It signals internal strains in the collateral system. ...