Macro Insights Weekly - Soaring bond yields and the global economy

2025 has begun with a striking rise in bond yields. This reflects a worrisome combination of inflation risks returning and rates market demanding a higher premium from heavily indebted sovereigns.
France, Germany, UK, and US 10-year government bond yields have risen appreciably.
Even typically stable Singapore bond yields have jumped.
Room for central bank support to manage ballooning debt burdens in parts of EM and DM has shrunk.
Interest payments to service 100%+ debt/GDP can become onerous swiftly.
Interest in duration risk may remain weak.