Citi warns surging bond yields pose most serious risk to global economy

Citigroup warns that the rapid rise in global bond yields, driven by an intense sell-off in government securities, poses the most serious risk to the global economy, asserting that higher yields are here to stay. The key question is whether central banks can bring inflation back to target, as the sell-off is attributed to four factors including inflation persistence and supply concerns. This marks a notable shift in tone from major banks, signaling sustained higher borrowing costs that could weigh on growth.