Bond Yields Soar to Highest Level Since 2008 Crisis
Global long-term bond yields are at their highest level since the 2008 financial crisis as major sovereign bonds continue to sell off. Japan's 10-year government bond yield surged to 3% for the first time since 1996, while the 30-year JGB yield topped a record 4.18%. The 10-year US bond yield also surged to a new multi-year high and stands at 4.78%.
The rising long-term yields have some industry commentators arguing that the Federal Reserve may use its Foreign and International Monetary Authorities (FIMA) repo facility, which would create new dollar liquidity. This scenario is being priced in by investors, with Treasury Secretary Scott Bessent hinting at the future use of the FIMA facility in August.
The bond sell-off comes as tensions in the Iran war flare up once more, causing oil prices to rise over 2%. Bitcoin has been trading sideways near the $78,000 mark despite the positive news and renewed interest in the debasement trade. Analysts are keeping a close eye on the price action, with some predicting that the key battleground for the coming weeks will be the $76,000-$82,000 range.