Bond Market Volatility: A Spooky Friday 13th for Equities and Long-Term Interest Rates

Investors in U.S. Treasuries are feeling on edge on Friday the 13th as news of increased U.S. consumer prices and weak demand at the auction of U.S. 30-year bonds sparks a selloff in world bond markets. With sentiment in the fixed-income markets remaining fragile and uncertainty heightened by the war in Israel, U.S. and European government bond yields are lower. The latest U.S. inflation data has revived worries of further tightening from the Federal Reserve, while French annual inflation is slightly higher than initially measured. Chinese data shows a narrowing slump in merchandise trade and persistent deflationary pressures, highlighting the challenges faced by policymakers in achieving a durable economic recovery. Big banks, including JPMorgan Chase, Wells Fargo, and Citigroup, are set to report higher third-quarter profits, while tighter U.S. rules on shipments of AI chips to China are also in focus.