Global Interest Rates Hike Fears Send Public Debt Yields Soaring

Public debt yields have surged in recent weeks, reaching levels not seen in two decades. Investors are selling off assets due to fears of inflation and potential interest rate hikes. With fixed-interest bonds losing purchasing power as prices rise, investors demand higher profitability on new issues.

The European Central Bank (ECB) and the United States Federal Reserve (the Fed) may raise interest rates in their next meetings. The ECB's meeting is scheduled for September 10th, while the Fed's meeting will take place on the 16th. However, the new Fed head, Kevin Warsh, may wait until after the midterm elections in November to make a move.

Core inflation, which excludes unprocessed food and energy, remains relatively controlled at 2.5% in the United States. In contrast, general inflation stood at 3.4% in July. The ECB's core inflation rate was 2.4% in August, while Spain's reached 2.9%. The Brent barrel price is around $95, still below its peak of over $110 a few months ago.

The 10-year bond yield in the US is currently moving around 4.76%, nearing the 5% benchmark. In Spain, the one-year Euribor rate has approached an average of 3% and remains steady at this level.