Global Real Yields Hit Decade Highs as $220 Billion AI Bond Sales Flood Markets
Updated
Updated · Yahoo Finance · Aug 14
Global Real Yields Hit Decade Highs as $220 Billion AI Bond Sales Flood Markets
3 articles · Updated · Yahoo Finance · Aug 14
Summary
U.S. 30-year real yields have climbed to about 3%—near 18-year highs—while British and German 10-year real yields sit at their highest in more than a decade.
Almost $220 billion of bonds from Alphabet, Amazon and Meta this year, alongside heavy government borrowing, has intensified competition for capital and forced investors to demand higher inflation-adjusted returns.
That rise in real yields has lifted nominal borrowing costs worldwide, with the United States paying 5.22% at a 30-year bond auction on Thursday, the highest since 2001.
Markets are also pricing in rate hikes, strong U.S. growth and the end of central-bank bond buying, adding to upward pressure that investors say threatens stocks and the broader economy.