WSJ What’s News – Why Rising Global Bond Yields Are Worrying Investors

Date: September 3, 2025
Host: Alex Osola
Guests: Spencer Jacob (WSJ Investing Columnist), Vicki Go Hwang (WSJ Crypto Reporter), Inti Pacheco (WSJ Data Reporter)

Overview

This episode centers on the recent surge in global bond yields, why it’s unsettling markets, and what it signals about government finances worldwide. Additional segments cover the slowing US labor market, the Trump family’s growing involvement in the crypto sector, Florida’s planned elimination of vaccine mandates, and a deep dive into the makeup of America’s billionaires.

Key Discussion Points & Insights

1. Rising Global Bond Yields: Investor Anxiety & Government Debt

[00:35–04:45]

• Why are bond yields rising?

  • Host Alex Osola introduces the topic by noting that yields on 30-year UK gilts hit their highest level since 1998, with similar multi-decade highs in France and Japan. The US 30-year Treasury briefly topped 5%.
  • Spencer Jacob explains that this reflects anxiety over government borrowing and investors’ willingness to take on long-term risk:

    "You're taking the most risk because inflation has the most potential to destroy the value of those bonds." — Spencer Jacob [01:36]
    Investors, normally large entities like pension funds and insurers, are also uneasy.

• What’s unique in developed markets now?

  • Rare alignment: Rising bond yields and sinking currencies, usually seen in emerging markets, now appear in the UK:

    "Generally, people are looking to put money to work...when those interest rates rise ... and the currency sinks, then you know you have a problem." — Spencer Jacob [02:15]

• Why is this alarming?

  • Old bonds with low interest rates are rolling over into new, higher-interest debt, making government borrowing costlier:

    "The U.S. for example, pays a trillion dollars a year in interest. A trillion dollars. That's more than the entire defense budget." — Spencer Jacob [03:12]

• What could calm markets?

  • True fiscal austerity (raising taxes, cutting spending) is unlikely, especially in the US.
  • Jacob warns the worst would be central banks helping governments by financing deficits, effectively printing money:

    "We're really entering a kind of a dangerous territory there...that's tantamount to money printing. And that would possibly unleash a lot more inflation ... That is the real nightmare scenario." — Spencer Jacob [03:55]

2. US Labor Market Update

[04:55–05:32]

• Job openings slipped to 7.2 million in July, indicating a slowing but not collapsing labor market.
• Listeners are primed to watch for the upcoming August jobs report for more current data.

3. US Markets and Gold Performance

[05:32–05:58]

• The Nasdaq outperforms (up 1%) with Alphabet and Apple leading gains.
• The S&P 500 also up (0.5%), Dow flat.
• Gold futures hit a record: $3,593.20 per troy ounce.

4. Trump Family’s Crypto Expansion: American Bitcoin

[06:53–08:40]

• American Bitcoin, a mining and accumulation company backed by Donald Trump Jr. and Eric Trump, begins trading on the Nasdaq, closing up 17%.
• Vicki Go Hwang explains the business model:

  "What it does is it mines bitcoin...also...is to accumulate bitcoin. You buy Bitco and put it on your balance sheet and try not to sell bitcoin, which is famously volatile." — Vicki Go Hwang [07:17]

• The Trumps are “trying to reach into every corner of the crypto market.”

  "The Trump brothers...hope that retail investors can access these opportunities." — Vicki Go Hwang [07:57]

• Public listing profits the Trumps directly:

  "Both Eric Trump and Donald Trump Jr hold shares in the company. So by bringing this company to the public market, their stake will be worth a substantial sum." — Vicki Go Hwang [08:24]

5. Crime & Vaccine Mandates: Policy Updates

[08:44–10:13]

• President Trump hints at expanding National Guard presence to New Orleans for law enforcement assistance.
• Florida proposes to eliminate all vaccine mandates, including for schoolchildren, making it a state-level first.
• Experts warn this move undermines public safety.

6. America’s Billionaires: Who Are They?

[10:13–12:19]

• There are now 1,135 US billionaires (up from 927 in 2020), collectively worth about $5.7 trillion.
• Data Reporter Inti Pacheco challenges common stereotypes:

  "More of them actually made their money in finance or banking...there's people who became billionaires maybe in oil, maybe in roofing, maybe in chocolates. They definitely skew older." — Inti Pacheco [10:28]

  • 85% are men, many over age 65.
• Inheritors hold significant wealth:

  "A lot of families or dynasties ... like the Walton family...the Kochs...the Pritzkers...the Mars family...held about 15% of the total wealth." — Inti Pacheco [11:03]

• Philanthropy is common, but not universal:

  "There's a lot of education, a lot of...medical research. It's very common for billionaires to give away a lot of their money. But there were hundreds...that hadn't given any money in the past 10 years, at least publicly." — Inti Pacheco [11:55]

Notable Quotes

• "You're taking the most risk because inflation has the most potential to destroy the value of those bonds." — Spencer Jacob [01:36]
• "The US pays a trillion dollars a year in interest. That's more than the entire defense budget." — Spencer Jacob [03:12]
• "We're really entering a kind of a dangerous territory ... that's tantamount to money printing." — Spencer Jacob [03:55]
• "Bitcoin mining is a foundational part of the crypto market because bitcoin is the largest and oldest cryptocurrency." — Vicki Go Hwang [07:57]
• "More of them actually made their money in finance or banking ... There’s people who became billionaires maybe in oil, maybe in roofing, maybe in chocolates." — Inti Pacheco [10:28]

Timestamps for Important Segments

• [00:35] Global bond yields surge – opening analysis
• [01:28] Spencer Jacob explains investor anxiety in bonds
• [03:30] What would calm markets, and the risk of policy interference
• [04:45] US job openings data and labor market signals
• [06:53] Trump family-backed American Bitcoin debuts on Nasdaq
• [08:44] Policy news: National Guard for crime, Florida's vaccine mandate elimination
• [10:28] US billionaires: origins, demographics, and philanthropy

Summary prepared by Podcast Summarizer. For a concise review with context and key quotes, see above.