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10-year Treasury yields hit 24-year high amid global bond sell-off

The move pushed the 10-year US Treasury yield to 5.34%, the highest level since 2002, while UK 30-year yields briefly topped 6% for the first time since 1998.

Reported · Written up by our desk · Government Bonds

Global bond markets sold off on Thursday, lifting 10-year US Treasury borrowing costs to their highest level in 24 years, amid heightened investor concern around inflation and the US deficit.

The threat of renewed inflation linked to persistently high oil prices spooked investors, with central banks widely expected to raise interest rates in coming months to prevent higher prices from becoming embedded, according to the Guardian.

In the US, the Treasury 10-year yield rose to 5.34%, the highest level since 2002, while in the UK the yield on 30-year bonds briefly rose above 6% for the first time since 1998 before easing later in the day, the Guardian reported.

UK long-term yields are also tied to expectations ahead of Chancellor John Healey’s first budget later this month, as surging borrowing costs add pressure, according to the outlet.

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