HSBC: Market concerns about inflation not being transitory; rising long-term interest rates may reflect structural changes

```htmlGolden Ten Data reported on May 18 that Frederic Neumann, an economist at HSBC, stated that if the current rise in Japanese government bond yields was purely due to short-term inflation concerns, long-term yields would not fluctuate as much. Investors are clearly uneasy, believing that the current increase in price pressures is less a temporary phenomenon related to the Gulf crisis and more a signal indicating that inflationary pressures have structurally returned. This will force the central bank to not only tighten policy in the short term but also maintain high interest rates for a longer period. Investors are increasingly concerned about fiscal conditions, especially in major developed markets, and are therefore demanding higher risk premiums for holding long-term debt. Against this backdrop, the government bond market is increasingly competing with the capital demand generated by the global artificial intelligence boom, thus pushing up long-term capital costs.```