The global markets for government bonds have seen widespread sales amid concerns about inflation and high interest rates. The yield on 10-year U.S. Treasury bonds remains above 4.8%, while Germany's government bonds have reached 3.375%, Japan's at 3.016%, and the UK's at 5.25%.
Investors are worried about the resurgence of inflationary pressures against the backdrop of rising oil prices due to conflicts in the Middle East and expectations of further rate hikes by leading central banks.
The U.S. Federal Reserve has maintained its base interest rate in the range of 3.5%-3.75%, but has not ruled out further increases if sufficient progress is not made in reducing inflation. The Bank of Japan is also considering tightening its policy, while markets are pricing in a rate hike by the European Central Bank.
According to George Maris, Director of Investments at Principal Asset Management, the level of global debt continues to rise, making the economy more vulnerable to potential new shocks.
Meanwhile, the yield on 30-year U.S. government bonds has exceeded 5.33%, and the price of WTI crude oil has risen above $85 per barrel.
