Higher bond yields may stick around as sticky inflation and deficits reshape markets

Fed cuts may not matter as term premium climbs fast

Long-term bond yields are moving higher even after Fed rate cuts, as sticky inflation persists and U.S. deficits swell. Investors are demanding a bigger term premium, nudging markets toward a “higher-for-longer” outlook. With 10-year yields testing key resistance, the repricing could hit mortgages, corporate borrowing, equity valuations, and currency trends worldwide.