Global bonds gripped by fiscal worries as US 10-year yield hits 24-year high
TLT•Global bonds sold off, pushing the US 10-year Treasury yield to 5.34%, its highest since 2002. France’s 10-year yield rose 10 basis points to 4.96%, while Britain’s 30-year yield topped 6%, its highest since 1998.
1. Yields climb worldwide
Global government bonds sold off on Thursday as borrowing costs rose in the US, France and Japan. The US 10-year Treasury yield reached 5.34%, its highest since 2002, after its largest quarterly rise this century in the three months to September.
2. Fiscal pressures intensify
France’s 10-year yield rose 10 basis points to 4.96%, nearing 5%, and the cost of insuring French debt against default reached its highest since 2013. Britain’s 30-year government bond yield climbed above 6%, its highest since 1998. A strategist said French bonds were under pressure during a messy budget period.
3. Rate expectations shift
Traders now expect at least three more Federal Reserve hikes before the middle of 2027, following a hike last month. European markets are pricing three further 25-basis-point increases by the middle of next year. European shares fell, with the STOXX 600 down 1.2% to its lowest since June.
