Global bond rout gathers pace as inflation fears mount
Borrowing costs continue to extend multi-decade highs as nerves over inflation, higher rates and high debt remain at the fore.
TL;DR
- Government bonds have sold off globally, pushing borrowing costs to multi-decade highs.
- German 10-year bunds reached their highest level since 2011, and Japan's 10-year yield crossed 3% for the first time in three decades.
- US 10-year Treasury yield and British 10-year gilts also hit recent highs.
- The sell-off is driven by fears of resurging inflation, higher oil prices due to Middle East conflict, and concerns about high global debt levels.
- Central banks are expected to increase interest rates, further impacting bond markets negatively.
- Equity markets have entered a risk-off mode, with major indices falling.
- Experts express concerns about shaky market fundamentals, rising cost of money, stratospheric debt levels, and a lack of political will to address these issues.