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Falling wage share signals lower bond yields, a positive sign for fixed-income markets amid rising inequality.

Market News
18 May 2026
Market Watch
View Source
Bullish
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The share of corporate profits going to employees, known as wage share, is declining, indicating rising inequality. Economist Dario Perkins highlights a strong correlation between wage share and interest rates, suggesting that as wage share falls, bond yields tend to decrease. This trend is seen as bullish for fixed-income markets, especially as bond yields have recently spiked to multiyear highs globally. The shift reflects how productivity gains are increasingly captured by companies rather than workers, impacting economic inequality and interest rate dynamics.

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Sweden's Bitcoin Treasury Capital launches Europe's first BTC-backed preferred shares with 10% dividend.

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Bitcoin stalls near $66K resistance, risks dropping unless key supports hold.

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