Tradeweb says global government bond yields climb as inflation and central bank tightening weigh
TLT•Tradeweb analysis flagged a third straight September sell-off in global government bonds, driven by higher energy prices, heavy issuance and central bank decisions. The U.S. 10-year Treasury yield rose more than 41 basis points to 5.16%, while French and UK 10-year yields ended at 4.84% and 5.41%, respectively.
1. Global bond yields rise
Tradeweb analysis flagged a third straight September sell-off in global government bonds, driven by higher energy prices, heavy issuance and central bank decisions. The U.S. 10-year Treasury yield rose more than 41 basis points to 5.16% and reached 5.23% on Sept. 25; headline inflation was 3.4% in August, and the FOMC raised its target range by 25 basis points to 3.75%-4.00% on Sept. 16. French 10-year yields rose 67 basis points for the month to 4.84%, while UK 10-year Gilt yields increased 35 basis points to 5.41%; the ECB lifted its deposit rate to 2.5%, and the Bank of England held Bank Rate at 3.75% and mapped a QE unwind.
