Global bond rout pushes U.S. 10-year Treasury yield to a 24-year peak before buyers step in

U.S. and global government bonds took another punishing turn on Thursday, driving the benchmark 10-year Treasury yield as high as about 5.34% — its loftiest print since 2002 — before bargain hunters steadied the market later in the New York session.

Reuters reported that the September quarter delivered Treasuries’ sharpest yield rise this century, with French 10-year yields approaching 5% and Britain’s 30-year gilt yield crossing 6% for the first time since 1998. Analysts tied the selloff to sticky inflation, higher energy costs, heavy government issuance and competition for capital from the AI and data-centre buildout. The Institute of International Finance estimated advanced economies paid more than US$3.3 trillion in interest on traded government bonds over the past year.

By the U.S. afternoon, Reuters said the 10-year yield had retreated toward about 5.26% as prices recovered across the curve. A companion Reuters markets wrap said U.S. equities closed slightly higher — the S&P 500 up about 0.2% — after Fed Vice Chair Philip Jefferson signalled patience on further hikes and cooler inflation data trimmed October rate-hike odds.

Higher long-term rates raise financing costs for companies, mortgage borrowers and governments. Canadian readers watching GIC, mortgage and pension-fund pricing should treat Thursday’s moves as a snapshot of volatile global conditions, not a forecast.

This article is for general information only and is not investment advice. It does not recommend buying or selling any security or product. Consult a qualified adviser about your own situation.

Sources: Reuters; Reuters via London Stock Exchange news.