Bond Markets Selloff Hits Global Economies Amid Inflation Worries

Global bond markets are experiencing a significant selloff, with long-term borrowing costs rising across major economies. In the US, 30-year bond yields reached their highest levels since 2007, driven by renewed inflation worries and concerns about fiscal pressures.

The US Treasury's 10-year note yield is now above 4.74%, a level that in the past has attracted attention from US officials. Some analysts believe this will be crucial for bond markets, as any break higher could undermine confidence.

Foreign investors are also reducing their holdings of US Treasuries, with Japan's decline being particularly notable. This shift may make it more challenging for the US to absorb additional supply at yesterday's yields.

In Europe, Germany's 10-year Bund yield has reached its highest since 2011, while French and British bond markets are also experiencing significant selling pressure.