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Global Bond Rout Deepens: US 10-Year Yield Hits 24-Year High Amid Surging Borrowing Costs
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Firstpost•01-10-2026, 18:30
Global Bond Rout Deepens: US 10-Year Yield Hits 24-Year High Amid Surging Borrowing Costs
- •Global bond markets faced renewed pressure, with the US 10-year Treasury yield climbing to 5.34%, its highest since 2002, and government borrowing costs surging across major economies.
- •The sell-off intensified concerns over rising government debt-servicing costs and tighter financial conditions, negatively impacting equities and credit markets.
- •France's 10-year government bond yield jumped to 4.96%, nearing 5%, while Britain's 30-year yield crossed 6%, reaching its highest since 1998.
- •Rising yields, which signify falling bond prices, translate to higher borrowing costs for governments, companies, and households, potentially straining public finances for heavily indebted nations.
- •Markets have significantly scaled back expectations for US interest rate cuts, now anticipating at least three more Federal Reserve hikes before mid-2027, with the ECB also expected to raise rates further.
Key Questions Answered
The US 10-year Treasury yield climbed to 5.34 percent, marking its highest level since 2002.
France's 10-year bond yield jumped to 4.96 percent, recording its worst quarterly performance since 1987, while the cost of insuring French debt against default hit its highest level since 2013. Meanwhile, Britain's 30-year government bond yield crossed 6 percent to reach its highest level since 1998.
Traders have sharply scaled back their expectations for interest rate cuts, now anticipating at least three more Federal Reserve rate hikes before mid-2027.
