Bond Rout Pushing Long-Term Rates Higher Keeps Markets on Edge
- US 30-year yield hits 5% while German 10-year rate reaches 3%
- Higher US yields starting to disrupt other fixed income: HSBC
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Global markets remain on edge after a selloff in government bonds drove long-term borrowing costs in the US and Europe to the highest level in more than a decade.
While the market stabilized in US hours, with the two-year note’s yield falling as much as 10 basis points, traders remain wary of an extended period of tight monetary policy, demanding ever higher compensation to hold long-dated government debt. The repricing — which sent the yield on 30-year US Treasuries past 5% for the first time since 2007 earlier on Wednesday — is even spilling over into equity and corporate bond markets.