Cost of US debt brings global ups and downs

US ten-year bond yields look likely to hit an all-time low, which would be good news for developing nations but a bad sign for the Fed

Shoppers in Tashkent, Uzbekistan. The central Asian state is one of a number of developing countires that will benefit from lower US bond yields Picture: Bloomberg
Jerome Powell, chairman of the US Federal Reserve: the central bank’s room for manoeuvre in the event of a recession has been pegged back by interest rate cuts

Movements in the US bond markets are normally not all that noteworthy, but recently that has changed. A lot has been going on, with ramifications for asset prices and bond markets all over the world. The benchmark US ten-year bond yield has been falling rapidly and there ...