HSBC: Market concerns that inflation is not a temporary phenomenon, and rising long-term interest rates may reflect structural changes

Golden Finance reports that on May 18th, HSBC economist Frederic Neumann stated that if the current rise in Japanese government bond yields is purely due to short-term concerns about inflation, then long-term yields would not fluctuate so much.
Investors are clearly uneasy, believing that the current rise in price pressures is not merely a temporary phenomenon related to the Gulf crisis, but rather a signal indicating that inflationary pressures have returned structurally, which will force central banks not only to tighten policies in the short term but also to maintain high interest rates for a longer period.
Investors are increasingly worried about fiscal conditions, especially in major developed markets, and are demanding higher risk premiums for holding long-term debt.
Against this backdrop, the government bond market is increasingly competing with the capital demand driven by the global AI boom, thereby pushing up long-term capital costs. (Jin10)