12 hrs ago
Global Bond Selloff Deepens as Debt and Inflation Fears Rise
Government bonds are loans that investors give to countries.
Their prices fell in a broad global selloff, which made governments pay more to borrow money.
Japan’s 10-year borrowing rate reached 3% for the first time since 1996.
Borrowing costs also increased in the United States, the United Kingdom and Germany.
Investors are worried about large government debts and budget deficits.
Higher energy prices could keep inflation high.
This may make it harder for central banks to lower interest rates.
Higher borrowing costs can also make mortgages and business loans more expensive.
Japanese investors may buy more bonds at home instead of investing overseas.
That could put additional pressure on foreign bond markets such as Australia’s.
Japan’s 10-year government bond yield reached 3%, its highest level since 1996.
United States, United Kingdom and German borrowing costs also rose to multi-year highs.
The United States 10-year Treasury yield climbed to around 4.8%, while Britain’s reached 5.25%.
Higher government debt, fiscal deficits, energy prices and inflation fears are intensifying pressure on bond markets.
Rising Japanese yields could reduce Japanese demand for overseas bonds, affecting markets such as Australia.
- Who
- Governments, investors, central banks, households and businesses across major economies.
- What
- A global bond-market selloff intensified, driving government borrowing costs higher.
- Where
- Major bond markets including Japan, the United States, Germany, the United Kingdom and Australia.
- When
- Tuesday; the articles do not provide a calendar date.
- Why
- Investors are responding to inflation concerns, higher energy prices, large government debts, fiscal deficits, increased bond issuance, geopolitical tensions and changing demand for bonds.
Key facts
- Japan 10-year yield
- Reached 3%, the first time since 1996.
- United States 10-year yield
- Rose to around 4.8%.
- German 10-year yield
- Reached 3.35%, the highest since 2011.
- United Kingdom 10-year yield
- Reached 5.25%, the highest since 2008.
- United States debt
- Reached $40 trillion, according to the article.
- Brent crude
- Rose nearly 2% to above $92 a barrel.
- Eurozone inflation
- Rose above 3% in August.









