U.S. Treasury yields reached their highest levels in over twenty years on Thursday amid a global bond sell-off.
The news coincides with rising government borrowing costs worldwide on Thursday, continuing a trend that has lasted for months as investors worry about the absence of political measures to address fiscal deficits, amid persistent inflation and increasing interest rates.
The 10-year Treasury yield surpassed a level last seen in April 2002, climbing 4 basis points to 5.3338%, a key reference for mortgage, auto, and credit card rates.
The 30-year Treasury yield increased 3 basis points to 5.6702%, its highest since July 2002, while the 2-year yield rose 2 basis points to 4.91%.
Since yields and prices move inversely, one basis point equals 0.01%.
The increase follows comments from the Institute of International Finance last week, highlighting that major economies face persistent deficits and rising interest expenses — challenges traditionally seen with debt-ridden emerging markets.
Japan’s 10-year yield reached 3.126%, the highest in thirty years, pressured by a weaker yen and rate hikes by the Bank of Japan.
The German 10-year bund rose 4 basis points to 3.6179%, its highest since 2008.
Other European yields increased: France’s 10-year jumped 11 basis points to 4.9501%, Italy’s 10-year rose 10 basis points to 4.7171%, and the U.K.’s 10-year yield climbed 5 basis points to 5.483%.
By CEO NA Editorial Staff
