Global bond rout rolls on, pushes 30-year US Treasury yields to highest since 2004
Reuters • • general
Key Points:
- U.S. 30-year Treasury yields rose to 5.44%, the highest level since 2004, reflecting increased investor demand for compensation amid strong economic growth and high energy prices.
- Rising long-term borrowing costs add pressure to the U.S. government's finances and contribute to higher mortgage rates, now around 7%, the highest in two years.
- Global bond markets have been impacted by resilient economic growth, inflation concerns, and geopolitical factors like the Iran war, pushing yields to multi-decade highs in several countries including Japan and Germany.
- Despite higher borrowing costs, investors remain confident due to robust economic indicators such as strong employment growth and corporate profits.
- U.S. Treasury officials have attempted interventions to curb rising borrowing costs, but yields continue to climb, posing challenges for future government debt financing.
