The bond market rout is global. Here's what's driving it

Yields are rising worldwide, fueled by investor unease over unchecked government spending and by expectations that central banks could keep rates higher for longer. The U.S. Treasury market draws scrutiny as the world’s largest and most influential bond market, but the jump is also showing up in France, Germany, Italy, the United Kingdom, Japan, Canada and Australia. This week, yields reached multi-year and multi-decade highs. Investors are selling bonds, which pushes prices lower and lifts yields—moving borrowing costs across the economy, including mortgages, auto loans and student financing. Kristian Kerr of LPL Financial said the market is not signaling a crisis, though it is sending a warning. Yields were lower Thursday after a strong start to the week. Factors sustaining elevated yields include tighter inflation tied to energy prices from the war with Iran, more government supply as defense spending grows, and relatively robust global growth.