It has been called the “Bondcano” and the “Trumpocalypse of the bond markets” to impress upon regular savers and borrowers just how important the events of the last fortnight have been.
Since November 4 the US 10-year Treasury bond yield has risen from 1.77 per cent to almost a one-year high of 2.26 per cent.
That doesn’t sound dramatic, but it represents the fastest increase in the most important interest rate in the world in more than 7 and a half years.
It means investors holding US Government debt and other bonds priced off this benchmark just lost more than US$1 trillion.
It means all sorts of longer-term interest rates have risen sharply since the election of Donald Trump as US President as investors start to worry the host of The Apprentice would cut taxes, increase the cost of imports and spend money willy nilly in a way that will push up inflation globally.
New Zealanders can’t ignore these events.