Global Bond Selloff Intensifies as Borrowing Costs Approach Multi-Decade Highs

A global bond selloff worsened on Tuesday as government borrowing costs approached multi-decade highs in major economies.

The UK's 10-year gilt passed 5.2%, its highest level since the peak of the 2008 global financial crisis, while longer-term 30-year government bonds hit their highest level since 1998 at 5.89%.

In Japan, the benchmark 10-year bond yield hit 3%, its most elevated since 1996, and in Europe, yields briefly spiked across major economies following the release of eurozone inflation data.

Rising energy prices drove eurozone consumer prices up by 3.3% year over year in August, according to Eurostat's flash estimate, fueling concerns that central banks will hike interest rates to combat inflation from higher energy costs.