Global bond selloff deepens as US Treasury yields hit 24-year high

Global bond markets came under renewed selling pressure on Thursday, pushing government borrowing costs across major economies to multi-decade highs and raising concerns about the impact of higher rates on policymakers, companies and consumers.

 

The US 10-year Treasury yield climbed to 5.34%, its highest level since 2002, before easing to around 5.26% as bargain hunters returned to the market. Yields across the Treasury curve also moved lower later in the session.

 

Bond yields have risen sharply as prices fell, with higher energy costs adding to inflation pressures. Expectations of stronger economic growth, partly linked to rapid investment in artificial intelligence and data centres, have also increased demand for capital and raised expectations for future interest rates.

 

In Europe, France’s 10-year government bond yield approached 5% as the government presented its budget, while Britain’s 30-year gilt yield moved above 6%, reaching its highest level since 1998.

 

The surge in global yields is increasing borrowing costs for businesses and mortgage holders while putting additional pressure on government budgets through higher interest payments.

 

Despite the late-session stabilization, analysts said bond markets could remain vulnerable to further selling as investors reassess inflation, growth and the outlook for interest rates.