Global bond markets extended their rout on Wednesday, pushing borrowing costs to multi-decade highs as inflation fears intensified. German 10-year bund yields rose to 3.375%, their highest level since 2011, while Japan’s 10-year yield crossed 3% for the first time in three decades. U.S. 10-year Treasury yields stayed above 4.8% and British gilts hit 5.25%, a post-2008 high. Central banks worldwide are preparing for a string of interest rate hikes this month, sending equity markets into risk-off mode for three consecutive sessions. George Maris, chief investment officer at Principal Asset Management, warned that market fundamentals are shakier than they have been, with global debt levels at stratospheric and rising levels.
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