year highs as global sell

Key Points:

• U.S. Treasury yields hit 24-year highs, with the 10-year yield reaching 5.35% and the 30-year yield at 5.73%, marking their highest levels since 2002 amid a global bond sell-off.
• European government bond yields surged sharply, with France and Italy experiencing their biggest one-day jumps since March, and the U.K. 30-year bond yield reaching its highest point since 1998.
• The bond market turmoil pressured stocks, causing declines in major indexes including Europe’s Stoxx 600 and U.S. markets such as the S&P 500 and Nasdaq, while oil prices rose above $102 per barrel.
• IMF chief Kristalina Georgieva warned of escalating government debt costs and predicted sustained pressure on bond yields due to the rapid expansion of the artificial intelligence sector, which is driving significant corporate borrowing.
• Reports suggest SpaceX may raise $40 billion to invest in AI chips, adding to the hundreds of billions borrowed by AI-linked companies for data centers and equipment, potentially intensifying upward pressure on government bond yields globally.