(Bloomberg) — A resilient labor market signals the US is leading the global economy, and high US bond yields put pressure on others like the UK, according to Mohamed El-Erian.
Most Read from Bloomberg
US Treasuries sold off across the curve, sending 10-year yields to the highest since 2023, after the job report showed the employment in December advanced by the most in nine months.
“It confirms, one, the economy remains solid, and two, the US continues to meaningfully outperform other advanced economies,” El-Erian, president of Queens’ College Cambridge, said on Bloomberg Television following the job report. “That theme of dispersion is going to become really important as we go forward.”
The US bond selloff is spilling over to other markets. The UK 10-year yield extended an increase after the release of the US job data, pushing up borrowing costs and risking a doom loop for the public finances.
“The US leads a global bond selloff,” said El-Erian who is also a Bloomberg Opinion columnist, adding that higher yields is exposing weaknesses around the world.
Countries such as the UK “have domestic issues, and that gets amplified in a meaningful way if yields continue to go up due to the US,” he added. “What they cannot do is simply blame the US and stop there. They have to get their own act together.”
–With assistance from Lisa Abramowicz and Jonathan Ferro.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.