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Bond yields rise worldwide as investors fret over US turmoil
The 30-year Treasury yield is trading above 5.0%, and the sell-off has lifted government borrowing costs across the UK, France, Germany, and Japan.
Global government bond yields have surged to some of their highest levels in decades, as investors express concern about US bond market turmoil tied to worries about Donald Trump’s economic handling and the impact of the US conflict with Iran on inflation, according to the Guardian Business.
The article notes that long-term US borrowing costs are up to the highest level since 2007, with the 30-year Treasury bond yield trading above 5.0%. It explains that bond yields move higher when prices fall, which happens when investor demand weakens.
Because US Treasuries are a key anchor for global financial markets, higher US yields have pulled up yields elsewhere, with the G7 seeing among the sharpest increases. The Guardian Business cites UK 10-year rates near their highest since 2008, UK 30-year rates near 1998 levels, Germany near 2011 levels, and France at a 16-year peak.
The piece also points to actions aimed at stabilizing markets, including US Treasury Secretary Scott Bessent saying Washington would at least double purchases of long-term US bonds, and a recent joint intervention with Tokyo to support the Japanese yen. It says the yen intervention helped push down yields briefly, but the effect was temporary as yields rose again the next day.