The US 30-year Treasury yield climbed above 5.3% on August 18, reaching an intraday peak of 5.337%, the highest level since 2007. Government bond yields are surging in unison across the developed world, with Germany’s 10-year Bund yield reaching levels not seen since 2011 and Japan’s 10-year government bond yield climbing to nearly 3%, its highest in three decades. This rally is driven by oil prices topping $90 per barrel, massive sovereign debt issuance, and growing investor concern over inflation and fiscal risks. The situation has direct implications for financial markets: mortgage rates, corporate borrowing costs, and equity valuations, particularly for growth stocks, are all under pressure.
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