2 hrs ago
Global bond rout deepens as US 10-year yield hits high
Government bonds are loans that investors give to countries.
Their prices fell as investors demanded higher returns.
The US 10-year bond yield reached 5.34%, its highest level since 2002.
Bond yields also rose sharply in France, Britain and Japan.
This can make borrowing more expensive for governments, companies and families.
Investors are worried about inflation, oil prices, strong economic data and government debt.
Markets now expect fewer interest-rate cuts and possibly more rate increases.
Stock prices and some risky company debt also came under pressure.
The US 10-year Treasury yield climbed to 5.34%, its highest level since 2002.
France’s 10-year yield rose to 4.96%, while its bonds suffered their worst quarter since 1987.
Britain’s 30-year government bond yield surpassed 6%, reaching its highest level since 1998.
Japanese government bond yields recorded their fifth consecutive quarter of double-digit gains.
Higher yields pressured equities and credit markets as investors reassessed inflation, interest rates and fiscal risks.
- Who
- Investors, governments and central banks across the United States, Europe and Japan were involved in the market moves.
- What
- Global government bond yields surged, led by a rise in the US 10-year Treasury yield to 5.34%.
- Where
- The pressure affected bond markets in the United States, France, Britain, Japan and other major economies.
- When
- The renewed sell-off occurred on Thursday, with major quarterly moves reported through September.
- Why
- Investors reassessed inflation, interest rates, oil prices, strong US economic data, government borrowing and fiscal risks.
Key facts
- US 10-year yield
- 5.34%, the highest level since 2002
- France 10-year yield
- 4.96%, up 10 basis points on Thursday
- Britain 30-year yield
- Above 6%, the highest level since 1998
- French bond performance
- Worst quarterly performance since 1987
- US Treasury market
- The 10-year yield posted its biggest quarterly rise this century during the three months to September
- STOXX 600
- Fell 1.2% to its lowest level since June
- Market expectations
- Traders expect at least three more Federal Reserve rate hikes before mid-2027
Sources
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