Global Bond Market Sees Another Sell-Off Amid Rising Interest Rates and Inflation Concerns

The global bond market is experiencing another sell-off, driven by rising interest rates and inflation concerns. The 10-year US Treasury yield has reached a multi-decade high of 5.34%, while French and British yields have also hit record levels.

Experts point to a surge in AI investments as one factor pushing up bond yields. Major tech firms such as Alphabet, Amazon, Meta, Microsoft, and Oracle have issued over $220 billion in debt this year to fund their AI endeavors.

The higher borrowing costs are expected to slow economic growth and squeeze households and companies. Governments' rising debt loads and increased spending needs also contribute to the concerns.

Central banks, such as the US Treasury and the European Central Bank, have tools at their disposal to intervene in case of market stress, but experts warn that only concerted efforts by governments to bring down debt or boost growth will alleviate the pressure on bond yields.