U.S. Bond Yields Reach Multi-Decade Highs Amid Economic Concerns
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Tech stocks, especially, dropped as bond yields in the U.S. and elsewhere scored fresh milestones. The 30-year Treasury yield notched a new 19-year high on Tuesday, while Japan's 10-year bond yield reached its highest level in three decades. German 30-year bund yields hit their highest point since 2011, while rates on France's 30-year bond reached its highest going back to 2008.
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The yield on the U.S. 30-year Treasury bond hit 5.323% on Tuesday, a 19-year high, before edging down to just below 5.3%. The 10-year Treasury yield — a key benchmark for fixed mortgage rates and other longer-term loans — is above 4.7%. That compares to below 4% before the start of the Iran War at the end of February.
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MarketWatchThe yield on the U.S. 30-year Treasury BX:TMUBMUSD30Y, known as the long bond, which is particularly sensitive to rising inflation, is up nearly 2 basis points to 5.234%, its highest level since June 2007.
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Rates on car loans, credit cards and student debt are also directly or indirectly tied to bond yields, meaning those monthly payments could increase as well.
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BBC BusinessInterest rates on bonds - which are a type of debt - are known as yields and can directly affect the borrowing costs consumers pay on mortgages, car loans and credit cards.
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Global bond sell-off deepens amid fears over inflation and AI issuance Long-term government borrowing costs hit multi-decade highs
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BBC BusinessPublished Long-term borrowing costs across some of the word's biggest economies hit fresh highs because of concerns over inflation, government debt levels and spending on Artificial Intelligence (AI).
MarketWatchThe sell-off in global bond markets continued early Tuesday, pushing many benchmark borrowing costs to multi-year highs amid concerns about inflation, government budget deficits and increased supply of debt.
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01 Bloomberg China’s Flatter Bond Curve Shows Deeper Policy Divide With Peers A relentless drop in China’s long-end yields is driving an aggressive curve flattening, laying bare a stark macro rift with global markets where long-dated rates have hit multi-year peaks.
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02 CNBC The Fidelity Corporate Bond ETF (FCOR) is yielding 4.68%. The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is yielding 7%. The State Street SPDR Bloomberg High Yield Bond ETF (JNK) yields 6.62%. The iShares iBoxx High Yield Corporate Bond ETF (HYG) is yielding 5.89%. The KraneShares Asia Pacific High Income USD Bond ETF (KHYB) has a yield of about 9% Tuesday night. US30Y 5D mountain U.S. 30-year Treasury in the past five trading days Fed minutes Wednesday at 2 p.m. ET CNBC's economics reporter Steve Liesman will have the details. Cramer, the chips and the shorts The data is telling "Mad Money" man Jim Cramer that short activity is near its highest level in history. The chip stocks reacted to higher rates on Tuesday. The VanEck Semiconductor ETF (SMH) dropped 4.1% today.
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03 BBC Business The interest rate on US borrowing over 30 years hit 5.33% on Tuesday, the highest since June 2007, meanwhile UK long-term debt reached 5.85%. There were similar moves in Germany and Japan.
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04 MarketWatch The Tell 6% Treasury yields are the biggest risk facing stocks right now. Here’s why.
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05 Epoch Times Business The U.S. 30-year Treasury yield is trading at levels last seen 19 years ago, near the onset of the 2008 global financial crisis.
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Sources (6)
- marketwatch
- cnbc
- epochtimes-biz
- bloomberg
- ft
- bbc-biz