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Global government bond yields hit multi-decade highs
Global government bond yields have surged to multi-decade highs as selling pressure intensifies in major economies. The US 10-year Treasury yield reached 5.34%, its highest level in 24 years, while the UK 30-year gilt yield climbed above 6% for the first time since 1998. In France, 10-year yields approached 5%, marking levels not seen since 2002.
This spike in yields is attributed to persistent inflation, robust economic growth, and increased government fiscal spending. The rising cost of debt is significant; the International Finance Association (IIF) estimates that advanced economies paid over $3.3 trillion in interest on sovereign debt over the past year, a figure exceeding global spending on AI, defense, and clean energy combined.
The volatility in the bond market has spilled over into equity markets, particularly in Europe. Major indices such as the FTSE 100 and the German DAX experienced notable declines. Additionally, the rising rates are impacting the real economy, with US 30-year fixed mortgage rates climbing to 7.28%, the highest increase in four years.
Entities
Bloomberg · FTSE 100 · France · Freddie Mac · Germany · HSBC · International Finance Association · US Treasury · United Kingdom · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The average US 30-year fixed mortgage rate rose to 7.28%. www.tfmedia.co.kr · biz.heraldcorp.com
- [● 4 SOURCES] UK 30-year government bond yields rose above 6%, the highest since 1998. www.tfmedia.co.kr · biz.heraldcorp.com · radioh.no · www.vg.no
- [● 4 SOURCES] The US 10-year Treasury yield reached 5.34%, its highest level in 24 years. www.tfmedia.co.kr · biz.heraldcorp.com · radioh.no · www.vg.no
- [● 2 SOURCES] Advanced economies paid over $3.3 trillion in interest on sovereign debt in the last year. www.tfmedia.co.kr · biz.heraldcorp.com
- [● 2 SOURCES] European stock indices, including the FTSE 100 and DAX, declined following the rise in government bond yields. radioh.no · www.vg.no
- [● 4 SOURCES] French 10-year government bond yields rose to nearly 4.96%, the highest since 2002. www.tfmedia.co.kr · biz.heraldcorp.com · radioh.no · www.vg.no