The global bond rout continues as inflation, higher interest rates, and high debt remain in focus:
- Benchmark borrowing costs around the world are extending their multi-decade highs:
- Central banks in major economies, including the U.S., Japan, and euro zone, are widely expected to raise interest rates this month:
- The cost of risk is rising globally:
Government bond sell-offs are ongoing, driving borrowing costs to multi-decade highs. The yield on German 10-year bunds reached 3.375%—its highest level since 2011.
Japan's 10-year yield stands at 3.016%, while the 10-year Treasury yield remains above 4.8%:
Investors are rattled by the resurgence of inflationary pressures, particularly as fresh waves of conflict in the Middle East drive oil prices higher:
Central banks are seen preparing for a string of interest rate hikes, typically bad news for bonds:
“Debt levels around the world are at stratospheric levels, and solutions for curing that do not seem readily apparent,” said George Maris, chief investment officer at Principal Asset Management:
