Why are investors everywhere talking about bond yields?

Why do bond yields matter to ASX share investors and why is everyone suddenly talking about them? 

What do rising bond yields mean? 

Benchmark United States Government bond yields have been downward trending since late 2018. Yields have managed to plummet from as high as 3.25% in October 2018 to as low as 0.50% in late 2020.  

Record low bond yields mean that investors are forced to seek out higher-risk investments to gain a meaningful return. This translates to a flow of funds from bond markets into higher risk assets such as equity markets. Lower borrowing rates also buoy the economy and encourage greater economic activity from businesses and consumers. 

More recently, bond yields have surged from lows of 0.50% to 1.55% last…