10-year Treasury yield hits highest level since 2002 as global bond rout gathers pace
- U.S. Treasury yields have risen sharply, with the 10-year yield reaching 5.2% and the 30-year yield reaching 5.5%.
- Persistent inflation, expectations for further Federal Reserve rate increases, strong economic growth, government budget deficits, and possible higher oil prices linked to the Iran war are pressuring bond markets.
- Higher yields can pressure stock valuations, but strong earnings and economic growth have helped major stock averages remain near record highs.
- Analysts say investors should not automatically sell equities solely because Treasury yields exceed 5%, although rising inflation expectations could increase risks.
217 Articles
217 Articles
The United States long-term government bonds have continued to grow, and on 5 October they have been updated since 2002.
US Market: Borrowing costs surge as debt burden limits policy options
US borrowing costs are rising as Treasury yields remain elevated, with federal debt surpassing $40 trillion and annual interest payments nearing $1 trillion. Policymakers could use debt buybacks, Operation Twist or yield-curve control, but these carry inflation risks. Economists argue fiscal discipline, spending restraint and stronger revenues offer the more sustainable solution.
Reformatorisch Dagblad
US Treasury Secretary Scott Bessent has downplayed investors' concerns about rising government bond yields. "I would be worried if it were a rise happening only in the US," Bessent said in an interview with news site Axios that appeared this weekend. According to him, the latter is not the case.
The ten-year Treasury has peaked at 5.34% since 2002. But European bonds, starting with the French and Italian ones, are also under pressure. Energy, inflation, rates and debt feed sales, while the market becomes more price sensitive and central banks hold fewer securities
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