Bond Sell-Off

Bond sell-off means investors are selling bonds, causing bond prices to fall and yields to rise. In simple terms, a bond sell-off happens when many investors move out of bonds. A bond sell-off is important because rising yields can affect borrowing costs, mortgage rates, stock valuations, and financial conditions. It may happen when investors expect higher inflation, higher interest rates, or more government borrowing. For example, if strong economic data makes investors expect fewer rate cuts, bonds may sell off and yields may rise. A bond sell-off does not always mean the economy is weak. Sometimes it happens because growth or inflation expectations are stronger than expected.