Global Bond Rout Spreads as Fed Rate Hike Bets Fuel Selling

A global bond rout intensified, fueled by robust US economic data and weak demand at a Treasury auction.

The US 10-year yield surged to its highest level in almost two decades, reaching 5.12 per cent in Asian trading, after a 15-basis-point increase on September 23.

Treasury yields across the curve rose sharply, driven by expectations of further Federal Reserve rate hikes.

Fed officials raised borrowing costs last week to a range of 3.75 per cent to 4 per cent, with some predicting additional hikes before year-end and in 2027.