Bond Selloff Trend 2026

A bond selloff occurs when investors rapidly sell government or corporate bonds, driving prices down and yields up. Typically triggered by inflation fears, strong economic data, or central bank tightening, it signals shifting market sentiment. This environment benefits new buyers seeking higher yields, like pension funds or foreign investors, while existing bondholders face capital losses. Understanding this dynamic is crucial for navigating fixed-income markets and macroeconomic trends.