Global bond rout gathers pace as debt fears grow
Semafor ·
Intensifying concerns about persistently high inflation and mounting piles of government debt drove an accelerating rout in global bond markets.
A global bond selloff accelerated as concerns intensified over inflation and mounting piles of government debt worldwide. US 10-year Treasury yields reached their highest level since 2002 — following a similar move by 30-year Treasurys this week — helping drive bonds in Asia lower, too. Europe in particular appears vulnerable to increasing borrowing costs, with inflation in France, Germany, Italy, and Spain all exceeding analysts’ expectations .
Economists were also worried about French levels of borrowing, with Paris set to unveil a draft budget today that aims to close a yawning deficit and will likely be politically divisive ; France this week announced plans for record bond sales, despite the country’s rising debt-to-GDP ratio.