U.S. Treasury yields climbed to their highest levels in more than two decades on Thursday as a global bond sell-off gathered momentum. The 10-year Treasury yield rose 4 basis points to 5.3338%, according to LSEG, breaching a level last seen in April 2002.
The 30-year Treasury bond yield added 3 basis points to 5.6702%, its highest since July 2002. The 2-year yield was up 2 basis points at 4.91%. Bond yields move inversely to prices, and one basis point equals 0.01%.
CNBC noted that the 10-year yield is a key benchmark for mortgage rates, auto loans and credit card borrowing. Higher yields therefore signal rising financing costs across the broader economy.
Government borrowing costs also increased elsewhere on Thursday, extending a trend that has been building for months. Investors are worried about a lack of political action to address fiscal deficits, while inflation remains sticky and interest rates continue to rise.
The Institute of International Finance said last week that major economies face “persistently large deficits and rising interest expenses.” Japan’s 10-year yield was at 3.126%, the highest in three decades, while Germany’s 10-year bund yield rose to 3.6179%, its highest since 2008. France’s 10-year yield reached 4.9501%, Italy’s rose to 4.7171%, and the U.K.’s 10-year yield climbed to 5.483%.
