- Government borrowing costs are climbing worldwide as investors demand more compensation to hold longer-maturity debt.
- The 10-year Treasury yield surpassed 5%, hitting its highest point in almost two decades despite expanded buybacks of long-dated government debt.
- The average yield on sovereign debt globally reached 4%, a threshold last seen in 2007, signaling the end of the era of low yields.
- Treasury Secretary Scott Bessent announced expanded buybacks of long-dated government debt, an intervention that failed to halt the yield rise.
Quotes
“The rise in US bond yields even prompted Treasury Secretary Scott Bessent to announce expanded buybacks of long-dated government debt”
“Globally, the average yield on sovereign debt has reached 4%, a level last seen in 2007.”