WHATEVER the reason for the rise in global bond yields – whether due to higher energy prices putting pressure on government spending and inflation, or surging artificial intelligence- or AI-related capital expenditure – one thing is for sure: competition for capital is pushing borrowing costs higher.

These rising yields are taking place amid geopolitical uncertainties across the world, ranging from the US-China trade war to the unresolved Strait of Hormuz conflict and the long-running Russia-Ukraine war.