Global Bond Rout Deepens as Japan's 10-Year Yield Hits 3% for First Time Since 1996
Updated
Updated · The Globe and Mail · Sep 1
Global Bond Rout Deepens as Japan's 10-Year Yield Hits 3% for First Time Since 1996
3 articles · Updated · The Globe and Mail · Sep 1
Summary
Japan’s 10-year yield touched 3% on Tuesday, capping a broader selloff that also pushed U.S., German and British benchmark yields to multi-year highs.
Brent crude above $92 a barrel, euro zone inflation above 3%, and swelling public and private borrowing needs are driving fears that rates will stay higher for longer.
U.S. 10-year Treasury yields reached 4.798% and 30-year yields 5.27%, near 19-year highs, as big tech debt issuance and a U.S. debt load above $40 trillion added pressure.
Germany’s 10-year yield rose to 3.35%, its highest since 2011, while Britain’s 10-year gilt hit 5.25%, its highest since 2008, reinforcing bets on further rate hikes.
Analysts say Japan’s break above 3% marks a regime change for global fixed income, with higher JGB yields potentially pulling Japanese money home and lifting borrowing costs elsewhere.