Global bond rout deepens, pushes US Treasury yields to 24-year peak
TLT•Global bonds came under heavy selling pressure, with the US 10-year Treasury yield reaching 5.34%, its highest since 2002, before retreating to around 5.26%. French 10-year yields neared 5%, while Britain’s 30-year yield rose above 6%.
1. Yields hit multidecade highs
Global bond selling pushed borrowing costs in the United States, France and Japan to multidecade highs on Thursday, before late-morning bargain buying helped stabilize the US market. The benchmark US 10-year yield earlier reached 5.34%, its highest since 2002, then fell to around 5.26%.
2. Pressure across bond markets
French 10-year borrowing costs neared 5% as the government presented its 2027 budget bill. The gap between French and German 10-year yields was around its widest since the euro zone debt crisis of the 2010s, while the cost of insuring French debt against default reached its highest since 2013. Britain’s 30-year government yield rose above 6%, its highest since 1998.
3. Rates and growth expectations
The article cited higher energy costs, investment in artificial intelligence and data centers, and expectations for stronger growth as factors behind the global rise in yields. Traders expected at least three more Federal Reserve rate hikes before mid-2027, while markets priced three further European Central Bank increases of 25 basis points by then. An Institute of International Finance estimate put advanced economies’ interest payments on internationally traded government bonds at more than $3.3 trillion over the past year.
