US Treasury yields hit 24-year high as global bond selloff deepens
TLT•The US 10-year Treasury yield rose to 5.34%, its highest since 2002, as global bond selling pushed yields in France and Britain to decades-long highs. French 10-year borrowing costs neared 5%, while Britain’s 30-year yield topped 6%.
1. US yields climb
The US 10-year Treasury yield rose to 5.34% on Thursday, its highest level since 2002, after its biggest quarterly rise this century in the three months to September. It later retreated to around 5.32%. Higher energy costs, inflation and expectations for economic growth and interest rates have contributed to the global bond selloff.
2. Pressure in Europe
French 10-year borrowing costs neared 5%, their highest since 2002, as the government presented a 2027 budget bill that could face difficulty passing belt-tightening measures through parliament. The gap between French and German 10-year borrowing costs reached its highest since the euro zone debt crisis of the 2010s. Britain’s 30-year government bond yield rose above 6%, its highest since 1998.
3. Rates and markets
Traders now expect at least three more Federal Reserve rate hikes before mid-2027, while markets price three further European Central Bank increases of 25 basis points by then. European stocks were down 0.5% after hitting their lowest since June, while US stocks were set to open higher.
