Global Bond Sell-Off on China Trade Thaw Revives ‘Tantrum’ Fears
- French yields climb back toward 0% for first time since July
- It’s starting to ‘smell’ like bond rout of 2015, says Danske
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A sell-off across global bond markets deepened amid optimism over the potential removal of U.S. tariffs on Chinese goods, while stronger-than-expected data on the U.S. services sector also dented investors’ appetite for haven assets.
Treasuries slumped along with European and Japanese bonds as signs that trade tensions between the world’s two largest economies may be easing. The slide buoyed the 10-year Treasury yield, driving the global interest-rate benchmark more than 40 basis points above its 2019 low. In Europe, where sovereign yields hit record lows earlier this year on fears of recession, French rates climbed to near positive territory for the first time since July.