PiCK
Global Bond Selloff Deepens as U.S. 10-Year Yield Tops 5%, 30-Year Breaks 5.4%
Summary
- Selling in global bond markets intensified, with the U.S. 10-year Treasury yield topping 5% and the 30-year yield rising above 5.4%.
- As long-term Treasury yields climbed, concerns over inflation, the fiscal deficit, and long-term funding costs also increased.
- Rising long-term government bond yields across major economies including the U.S., Japan, the U.K., France and Germany are adding to selling pressure in global bond markets.
Forecast Trend Report by Period
Selling pressure intensified across global bond markets, driving long-term government bond yields in the U.S. and other major economies to their highest levels in years and, in some cases, decades.
Cryptocurrency-focused media outlet BlockBeats reported on September 15 that the yield on the 10-year U.S. Treasury note rose above 5%, its highest level since 2007. The 30-year Treasury bond yield also climbed past 5.4%, extending the rise in longer-dated debt.
As long-term Treasury yields moved higher, market concerns over U.S. inflation, the fiscal deficit and long-term funding costs also increased.
The rise was not limited to the U.S. Long-term government bond yields in Japan and major European economies also moved higher. Japan's 10-year government bond yield rose to 3%, its highest level since 1996.
The U.K.'s 10-year government bond yield climbed above 5.4%, the highest since 2007, while France's 10-year yield rose past 4.5% to its highest level since 2008. Germany's 10-year yield also climbed to 3.5%, the highest since 2009.
With long-term yields rising across major economies at the same time, selling pressure across global bond markets is expanding.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.