Global yields reach 15-year highs amid fears of a rate hikes

Global government bond yields continued their ascent – the US 30-year hit its highest level since 2011 and other benchmarks returned to 2008 levels – as resilient economic data refuted the view that central bank rates had peaked.

On Thursday, the five- and 10-year Treasury yields rose several basis points from their 2022 highs.

The 30-year bond yield has surged by seven basis points to reach 4.42%, significantly surpassing its recent trading levels.

The 10-year US bond yield climbed to 4.33%, up nearly eight basis points. The UK equivalent yield jumped to a 15-year high, while its German counterpart approached its highest level since 2011.

The Treasuries had led the global debt sell-off. And as the minutes of the Fed’s latest meeting, released Wednesday, showed, officials remain concerned that inflation will not fall, necessitating further policy tightening.

“We do think there is a possibility that you get an additional Fed rate hike later this year to sort of make sure that there’s an insurance policy that inflation remains contained,” said Jerome Schneider, head of short-term portfolio management and financing at Pacific Investment Management Co, which has $1.8 trillion under management.