Why Long-Dated Bonds Are Falling Out of Favor

Long-dated bonds are facing renewed selling pressure, ramping up borrowing costs around the world and creating a headache for investors and policymakers.

Yields on 30-year US Treasuries were around 5% in early September, a level last reached in July. Those on Japan’s 20-year notes climbed to their highest since 1999, while yields on 30-year UK gilts jumped to levels last recorded in 1998. French and Australian government bonds are among the others experiencing a selloff too.