NEW YORK: Global bond yields climbed to multi-year highs as investors demanded more compensation for inflation, debt and geopolitical risks.
US 30-year Treasury yields reached their highest level since 2007, according to the market analysis provided. Meanwhile, Japan’s benchmark borrowing cost approached levels not seen in almost 30 years.
Germany’s 10-year yield reached a 15-year high. French yields also traded near their highest levels since 2008. The Federal Reserve Bank of New York’s estimate of the US 10-year Treasury term premium approached 80 basis points.
The source described that as close to a 12-year high. Brent crude also moved above USD 90 per barrel amid continued uncertainty around the Strait of Hormuz.
Higher yields also pressured US technology shares. The Nasdaq fell 1.33% on Tuesday, while the Philadelphia Semiconductor Index dropped 5%, according to the source.
Read: Iran Tensions Hit Markets as Global Bond Yields Surge
Rising Treasury yields can increase borrowing costs across corporate debt, mortgages and emerging-market financing.
Read: Bond Vigilantes Return as Global Debt Slump Deepens
Higher US yields can raise external financing costs, while oil above USD 90 can increase the import bill. The analysis said future moves will depend partly on inflation, energy prices and central-bank policy.
