Global bond yields surge amid fiscal concerns and copper markets shift

Global financial markets are facing volatility driven by surging long-term government bond yields and fluctuations in the copper market. In the United States, 30-year Treasury yields reached their highest levels since 2007, hitting approximately 5.33%, while 10-year yields rose to 4.75%. Similar upward trends were observed in Japan, Germany, and France, fueled by concerns over fiscal deficits, rising national debt, and increased sovereign bond supplies.

Adding to the pressure on bond markets, large-scale corporate debt issuance by major technology firms to fund AI infrastructure is creating competition for capital. This trend is contributing to the upward pressure on long-term rates globally.

In the commodities sector, copper prices have experienced significant shifts. While LME copper spot prices reached record highs due to supply tightening and inventory shifts toward the U.S. to avoid potential tariffs, recent data shows an increase in LME inventories. This influx of stock, combined with sluggish industrial production and fixed-asset investment in China, has led to a recent downward turn in copper prices from their six-month peaks.