US bond market is like a 'slow moving car crash', says Michael McCarthy | The Business | ABC NEWS

By ABC News (Australia)

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Influential market strategist, Michael McCarthy says investors are concerned "an inflationary spiral will break out" and require "drastic action" to contain. He says that drastic action would be US interest rates at 8 per cent. Speaking with Alicia Barry on The Business, Mr McCarthy said the bond market is still flashing a red warning about the financial system, despite the calming down a little overnight, as yields eased from multi-year highs on falling oil prices. In recent weeks, investors globally have bailed out of government bonds, sending yields spiking on worries about government debt levels, rising oil prices and inflation as well as the vast cash piles flowing into AI. The Moomoo Australia and New Zealand chief executive has previously warned about the risks of another global financial crisis originating in the United States on The Business. In this interview, he talks about the risk of an inflationary spiral breaking out. "If people think that recessions are bad, wait

Tags: Australia, abc, abc news, news, business news, finance news, economic news, economy, finance, the business, abc news Australia, the business abc, bonds, bond markets, GFC, global financial crisis, bond yields, Michael McCarthy, Moomoo, interest rates