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

The global bond selloff continued on Wednesday, with government debt prices falling and yields rising as investors positioned themselves ahead of a closely watched meeting between U.S. President Donald Trump and Chinese President Xi Jinping, Reuters reported. The talks are expected to focus on trade, and markets are treating them as a potential turning point for risk sentiment after months of tariff-related uncertainty.

Bond yields move inversely to prices, so a sustained selloff means investors are demanding higher compensation to hold fixed income. That can reflect expectations of stronger growth, persistent inflation, or reduced demand for safe-haven assets as traders rotate toward equities. It can also signal concern about heavy government borrowing needs, particularly in the U.S., where deficit spending remains a focus.

For market participants, the key question is whether the Trump-Xi meeting produces concrete progress on trade or ends without a deal. A constructive outcome could extend the move out of bonds and into riskier assets, while a breakdown might revive safe-haven demand. Either way, the reaction in yields will offer an early read on how investors are repricing growth and inflation risks.