Global equities index falls, bond yields rise on fading rate cut hopes
When global equities dip and bond yields climb, it's like the financial markets suddenly losing faith in fairy tale endings — in this case, the hope for a Federal Reserve rate cut. Investors had been banking on the Fed easing monetary policy soon, but hawkish signals from officials and persistent inflation jitters sent the markets reeling, triggering a rethink in risk appetite worldwide. This shift highlights the delicate dance between growth optimism and inflation vigilance that central banks juggle.
In November 2025, global equity indexes, including Wall Street and MSCI’s gauge, fell sharply as investors pared back expectations for imminent rate cuts by the Fed. Concurrently, U.S. Treasury yields increased, particularly on the 10-year and 30-year bonds, reflecting rising borrowing costs amid fading hopes for lower rates. This yield uptick pulls bond prices down due to their inverse relationship. The backdrop includes ongoing inflation concerns, geopolitical risks, and mixed economic data, which collectively contribute to a cautious market environment. Such movements underscore how central bank communications and macroeconomic signals continue to tightly influence global financial markets.
