French bond yields keep climbing, dragging the rest of Europe with them. The question everyone's asking: what stops this, and when?
Two scenarios:
1) Market self-corrects — yields get high enough that buyers step in. Problem is, we're probably not there yet. US bond market imbalances are still pushing global yields higher, so the natural brake might be a long way off.
2) Policy intervention — central banks or governments step in. But here's the risk: will they use the right tool, or panic and reach for something that creates bigger problems down the road?
Either way, we're in wait-and-see mode. No one rings a bell at the top or bottom. Just remember: when yields spike, someone's always convinced "this time is different." It rarely is.
Two scenarios:
1) Market self-corrects — yields get high enough that buyers step in. Problem is, we're probably not there yet. US bond market imbalances are still pushing global yields higher, so the natural brake might be a long way off.
2) Policy intervention — central banks or governments step in. But here's the risk: will they use the right tool, or panic and reach for something that creates bigger problems down the road?
Either way, we're in wait-and-see mode. No one rings a bell at the top or bottom. Just remember: when yields spike, someone's always convinced "this time is different." It rarely is.