Why?
Because government bond yields have jumped in the United States and in other major economies. That can affect borrowing costs far beyond Wall Street.
Let's start with the simplest part.
A bond is basically an IOU. An investor lends money to a government or company, and the borrower promises payments and repayment later.
Now imagine you own a bond that pays less interest than similar new bonds being issued today.
Would another investor pay you the same price for your older bond?
Probably not.
You may have to sell it for less.
That gives us one of the most important bond-market relationships:
Bond prices down → bond yields up.
A "bond selloff" means bond prices are falling broadly as investors sell, buyers become less eager to buy at current prices, or investors demand a higher return before lending their money.
Why is the selloff "global"?
Because government bond yields have risen in several major countries at the same time.
And why is this happening now?
There is no single answer.
Recent Wall Street Journal reporting points to several pressures: higher energy prices and renewed inflation fears, worries about government borrowing, uncertainty about central-bank policy, a large supply of new bonds, and questions about future economic growth.
The Journal's coverage this week has generally treated these forces as intertwined rather than pretending one explanation settles the matter.
That is how REC wants to approach it too.
We'll explore the basics, show some evidence, ask the questions, and let you decide what you think.
Tomorrow: If bond yields rise, why can that make a mortgage in Raleigh more expensive?
Sources and further reading
The Wall Street Journal — "There Are Four Forces Pressuring Bonds: War Is No. 1"
wsj.com →
The Wall Street Journal — "Bond Yields Around the World Soar in Challenge to Government Borrowing"
wsj.com →
WSJ What's News in Markets — "Bond Selloff, Big Nvidia Deals, Apple's New CEO" — September 5, 2026
wsj.com →