Rising Inflation Expectations, Yield Spikes, and Bond Market Risks

Bondholders Risk $2.6 Trillion Hit on Even a Modest Yield Rise
https://www.bloomberg.com/news/articles/2021-10-23/bondholders-risk-2-6-trillion-hit-on-even-a-modest-yield-rise
“After a wild week on Wall Street that saw inflation expectations reach decade highs, portfolio managers are staring down an ever-more dangerous prospect: A modest rise in yields that inflicts trillions of dollars in losses.
It’s a result of investors’ exposure to duration, a key gauge of risk for bondholders that’s near record highs. Even a half-percentage point jump in yields from here, to roughly the pre-pandemic average in 2019, would be enough to ravage funds of all stripes. It’s a threat with implications across asset classes, from emerging markets to high-flying tech shares”.

Inflation Jump Cost U.S. Treasury $113 Billion in TIPS Payments
https://www.bloomberg.com/news/articles/2021-10-22/inflation-jump-cost-u-s-treasury-113-billion-in-tips-payments