Global Bonds Sell-Off Sends Yields to Nearly Two-Decade High

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โดย Money & Banking·GLOBAL·Read original
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Global bond yields have surged to their highest levels in nearly two decades, as higher oil prices stoke inflation concerns and investors increase bets that the Federal Reserve will raise interest rates. The Bloomberg Global Aggregate Treasury Index rose for a fourth consecutive day to 3.72%, the highest since mid-2008. Meanwhile, the yield on 10-year Japanese government bonds hit 3% for the first time since 1996, and Australia's 10-year yield reached its highest since 2011. Pressure comes from Fed Chair Kevin Warsh's remarks at Jackson Hole reaffirming a stance to curb inflation, as well as US-Iran tensions that could affect the Strait of Hormuz, and concerns over government spending in major economies. Analysts suggest the market is signaling that policy rates may need to stay higher for longer if inflation remains sticky.

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