Global bond sell-off deepens as 10-year Treasury yield hits highest since 2002

{"text":[[{"start":12.9,"text":"A brutal sell-off in US Treasuries accelerated on Thursday, driving 10-year yields to their highest since 2002 and pushing government borrowing costs around the world back to multiyear highs. "}],[{"start":26,"text":"Yields on 10-year Treasuries climbed 0.04 percentage points to 5.34 per cent, a level last seen almost a quarter of a century ago, as traders warned that the $32tn US government bond market, an anchor for global finance, was caught in a “vicious loop” of selling."}],[{"start":45.55,"text":"The pressure on Treasuries reverberated across global markets, with yields on the 10-year gilts rising 0.08 percentage points to 5.51 per cent, the highest level since 2007, and 30-year gilt yields passing 6 per cent for the first time since 1998."}],[{"start":64.05,"text":"Yields on 10-year Japanese debt also rose, approaching the three-decade high hit last month."}],[{"start":70.5,"text":"Bond markets have for months been racked by fears over the spectre of higher inflation triggered by the Middle East energy shock, but traders and investors have warned that forced selling has in recent days added to the upward pressure on Treasury yields. Yields move inversely to prices."}],[{"start":87.7,"text":"Mike Bell, head of market strategy at RBC BlueBay Asset Management, said investors did not want to “catch a falling knife”, adding that there was “a lot of technical-driven selling going on”."}],[{"start":100.05,"text":"“You’ve got to a position where lots of people are getting stopped out of long positions or thinking: I don’t want to hold this as [the yield] keeps going up.”"}],[{"start":108.89999999999999,"text":"European stocks dropped on Thursday morning as bonds sold off. The Stoxx Europe 600 was down 1.2 per cent. In the US, futures tracking the S&P 500 were flat and the Nasdaq 100 was on track to rally 0.6 per cent at the open."}],[{"start":null,"text":"

"}],[{"start":126.14999999999999,"text":"Thursday’s sell-off came as Brent crude, the international oil benchmark, rose 2 per cent to $100 a barrel on Thursday. Oil prices and Treasuries have been in their tightest relationship since 1990."}],[{"start":138.95,"text":"Mitul Kotecha, head of Asian foreign exchange and emerging markets macro strategy at Barclays, said the pressure on Japanese bonds was down to “a combination of the contagion of what’s happening in the US market and, to some extent, uncertainty about [the Bank of Japan] tightening [rates]”."}],[{"start":156.7,"text":" “It’s the fiscal concerns that continue to play in the market,” he added."}],[{"start":161.64999999999998,"text":"Inflation data in a number of European countries — including Germany, France and Italy — on Wednesday showed higher price pressures than analysts had expected, adding to investors’ fears that the energy price shock is feeding through into economic strain, although US data showed a drop in the Federal Reserve’s preferred inflation measure."}],[{"start":180.64999999999998,"text":"Some analysts argued that the level of yields across government bond markets would become attractive to investors. "}],[{"start":186.89999999999998,"text":"“The level of yields is now giving you decent compensation for any further increases,” said Richard Yetsenga, head of research at ANZ."}],[{"start":205.09999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790843486_4164.mp3"}