Global bond selloff deepens as US 30-year yields hit highest since 2004
TLT•The US 30-year Treasury yield reached 5.458%, its highest since 2004, while the 10-year yield hit 5.14%. US 30-year mortgage rates reached 7%, around their highest in two years.
1. Yields climb worldwide
US long-dated Treasury yields rose to their highest in more than 20 years as global bond markets faced pressure from high energy costs, resilient economic growth and increased government spending. The 30-year yield climbed to just over 5.46%, while the benchmark 10-year yield reached 5.14% after touching a 19-year high.
2. Borrowing costs rise
US 30-year mortgage rates reached 7%, about a percentage point higher than before the Iran war and around their highest in two years. Strong business activity data on Wednesday and Thursday pointed to US growth and rising inflation pressures, stoking bets on Federal Reserve rate hikes.
3. Global fiscal concerns
Germany's finance agency expects federal borrowing to reach a record €525.5 billion ($598 billion) in 2026 and rise further next year. Germany's 10-year Bund yield briefly topped 3.6% this month, its highest in 17 years, while Japan's 10-year bond yield reached its highest since 1996 on Thursday.
