EXPLAINER-Why are world bond markets selling off again?
- On Thursday, the 10-year United States Treasury yield hit 5.34%, its highest level since 2002, as global borrowing costs reached fresh multi-decade peaks amid inflation and debt concerns.
- Five major AI hyperscalers—Alphabet, Amazon, Meta, Microsoft, and Oracle—issued $220 billion in debt this year, while the United States debt pile has surpassed $40 trillion, pressuring borrowing costs.
- The rate on popular United States home loans rose last month to its highest in two years, piercing the 7% level for the first time since President Donald Trump's current term began; Britain's 30-year borrowing costs touched 6%.
- Bank of France Governor Emmanuel Moulin warned last week that expecting the European Central Bank to intervene is misguided, as the ECB can only stem an "unwarranted, disorderly" rise in costs if countries comply with budget rules.
- Treasury Secretary Scott Bessent contends that concerns about rising debt and yields overlook the United States economy's underlying strength, while investors known as "bond vigilantes" seek to impose fiscal discipline on governments perceived as profligate.
21 Articles
21 Articles
Times of India
Pakistan Live NewsWhy are world bond markets selling off again?
As inflation fears and mounting debt pressure rise, government borrowing costs have soared to unprecedented levels. The US Treasury yield, now the highest since 2002, signifies a shift in global market dynamics. These increasing bond yields adversely affect loans for families and businesses, posing challenges for governmental finances. Intervention by central banks could be on the horizon to maintain fiscal order, especially with future artifici…
Evening Standard
The IndependentStocks slump as bond market worries bite
The FTSE 100 index ended down 177.73 points, or 1.7%.
Global markets expanded risk aversion at the beginning of this Thursday afternoon, a movement that was reflected among the main classes of domestic assets. Investors' concern about the possibility of restriction in US diesel exports, after Washington pressured Germany and France to release emergency fuel stocks, added to the risks of war in the Middle East, causing the market to run towards the security of the dollar and the Treasurys. Around 12…
At around 1410 GMT, the Dow Jones lost 0.42%, the expanded S&P 500 index fell by 0.24%, while the Nasdaq index - with a high technological colour - dropped 0.15%. "Risk factors continue to weigh on the market," says Patrick O'Hare, an analyst at Briefing.com. "US bond rates remain high and oil is going up again, due to a lack of diplomatic progress" to end the conflict in the Middle East. Faced with inflationary pressures, the US government's 10…
In the United States, it was the ten and 30 year olds who broke new records, while in the United Kingdom the thirty year olds recorded unseen maximums since 1998. In France, the presentation of the budget led to a shooting of 11 basis points, while Japan and Germany are also negotiating in values not seen in long years.
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