US Treasury yields climbed to their highest levels in more than two decades on Thursday as a global sell-off in government bonds intensified.
The benchmark 10-year Treasury yield rose four basis points to 5.3338%, breaching a level last seen in April 2002, according to LSEG data.
The 30-year Treasury yield also climbed three basis points to 5.6702%, its highest level since July 2002, while the two-year Treasury yield rose two basis points to 4.91%.
Treasury yields and bond prices move in opposite directions, with one basis point equivalent to 0.01%.
The rise in US borrowing costs came as government bond yields increased across major global markets, extending a months-long trend driven by concerns over persistent fiscal deficits, rising interest expenses, sticky inflation and higher interest rates.
The Institute of International Finance said last week that major economies are facing “persistently large deficits and rising interest expenses,” challenges it said have historically been associated with debt-distressed emerging-market sovereigns.
In Japan, the 10-year government bond yield rose to 3.126%, its highest level in three decades, as Japanese government debt remained under pressure from a weaker yen and interest-rate increases by the Bank of Japan.
In Europe, Germany’s benchmark 10-year Bund yield increased four basis points to 3.6179%, its highest level since 2008. France’s 10-year yield rose 11 basis points to 4.9501%, while Italy’s gained 10 basis points to 4.7171%.
The UK’s 10-year government bond yield also climbed five basis points to 5.483%, reflecting the broader pressure across global bond markets.
Boluwatife Enome
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