sightBOND YIELDS•Oct 4
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30-year U.S. Treasury yields hit 5.65%, highest since 2002
Government bond yields are climbing across the United States, Japan and France, making debt refinancing more expensive. The 30-year U.S. Treasury yield hit 5.65%, its highest level since 2002, as heavy issuance and fiscal deficits test demand for long-term debt.
• French 10-year yields have reached their widest spread over German bunds since the European debt crisis.
• Japan’s existing government debt carries an average yield near 1%, leaving refinancing costs exposed as current rates rise.
Investors are demanding higher term premiums for debt, currency and inflation risks. Asset managers also added more than 100,000 short 10-year Treasury futures positions in the week ending September 22.
• French 10-year yields have reached their widest spread over German bunds since the European debt crisis.
• Japan’s existing government debt carries an average yield near 1%, leaving refinancing costs exposed as current rates rise.
Investors are demanding higher term premiums for debt, currency and inflation risks. Asset managers also added more than 100,000 short 10-year Treasury futures positions in the week ending September 22.
Timeline3
Oct 1
Asset managers added more than 100,000 short 10-year Treasury futures positions in the week ending September 22.
Oct 3
The 10-year Treasury yield recorded its largest July-to-September increase of the century.
Oct 4
Commentary linked persistent money-supply growth to strong credit demand despite restrictive Federal Reserve policy.
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Oct 4