Bond market selloff rumbles on ahead of Trump and XI talks - Reuters

Global bond markets continued to weaken on Friday, extending a selloff that has pushed yields higher across major economies. The move comes as investors position themselves ahead of highly anticipated talks between U.S. President Donald Trump and Chinese President Xi Jinping, a meeting that could shape the direction of trade relations between the world's two largest economies.

Rising bond yields matter because they feed into borrowing costs for governments, companies and households, and they influence how investors price risk across asset classes. When yields climb, bond prices fall, and the shift can ripple into equity valuations and currency markets. The timing is notable: markets are weighing the possibility of a trade breakthrough against the risk of prolonged friction, and neither outcome is priced with confidence.

What to watch is whether the talks produce concrete signals on tariffs or a broader trade framework, and how central banks respond to the yield move. For now, the bond market is acting as a real-time gauge of uncertainty, and its direction may depend less on the meeting itself than on what officials say afterward.