Central Banks Trigger Bond Sell-Off as US 10-Year Yield Tops 5%
Updated
Updated · Yahoo Finance · Sep 19
Central Banks Trigger Bond Sell-Off as US 10-Year Yield Tops 5%
3 articles · Updated · Yahoo Finance · Sep 19
Summary
Global government borrowing costs jumped Friday after the Fed, ECB and Bank of Japan all raised rates within a week, extending a broad bond sell-off.
The 10-year US Treasury yield climbed back above 5%, France’s 10-year yield hit 4.56%—its highest since 2008—and UK gilts rose as high as 5.31%.
Policymakers are reacting to inflation pressure tied increasingly to energy: the Bank of England held rates but signaled a likely hike as the Iran war keeps oil and gas prices elevated.
Japan’s move lifted its policy rate to 1.25%, the highest since 1995, and Governor Kazuo Ueda declined to rule out further tightening.
The rate shock rippled across markets, pushing European stocks down 0.5%, while Brent crude fell 1.5% to $103.29 as fears over Middle East supply eased somewhat.