Government bond yields are jumping again as Japan turns into a big seller, which is bad news for borrowers, stocks, and anyone hoping rates come down soon.

• US 10-year yields hit a multi-decade high above 5%, even after a softer inflation reading.
• The Bank of Japan raised its own rates, which is forcing traders who borrowed cheap yen to dump bonds they bought all over the world.
• Treasury attempts to calm both the Japanese and US bond markets have not worked, and buying bonds on a big scale would hurt the dollar.
• Higher rates plus gas prices that have doubled in a year are hitting middle and lower-income people hardest, and consumer debt is slipping into late payments.
• Restaurants are blaming weight loss drugs for weak sales, but people simply have less money left over to spend.

Outlook: If Japan keeps selling and ordinary bondholders start to panic, yields could rise further and squeeze both consumers and stocks into the holidays.