Global Bond Rout Gains Steam Led by Treasuries in Flight to Cash

Global sovereign debt suffered another day of sharp losses, driving benchmark 10-year Treasury yields up almost a percentage point from last week’s record low, amid a mad rush to sell even the highest-quality assets.

As U.S. equities plunged again Wednesday, traders cited a widespread move to sell a variety of holdings to generate cash on growing concern about the economic fallout from the coronavirus pandemic. European government debt slumped as well, although Italian 10-year yields staged a wild turnaround, paring losses as the European Central Bank was said to be intervening in the nation’s bond market. There was also news that euro-area officials are considering activating the region’s debt-crisis-era bailout facility, establishing credit lines for governments. The ECB’s governing council is holding an emergency call on its response.