How headline shocks move interest rates

Talk through how different kinds of news, for example a geopolitical crisis, a currency crisis or a political scandal, would likely affect interest rates.

Reason through the channels. A geopolitical shock usually triggers a flight to quality that lowers yields on safe government bonds while spreads on risky debt widen; a currency crisis often forces the affected country to raise rates to defend its currency and draws inflows to safe havens; a political scandal can raise risk premia and the affected country's yields. Explain the mechanism each time, as effects depend on the country and context.