Yields on the US Treasury's longest-dated bonds have surged to their highest levels in nearly two decades. On Tuesday, the 30-year U.S. Treasury yield rose six basis points to 5.2%, a level not seen since 2007 and the lead-up to the global financial crisis. This movement is fueled by investor concerns over accelerating inflation.
The selloff in longer-maturity government bonds has extended globally, with yields also elevated across Europe and Asia. Global debt markets remain on edge as traders monitor the responses of central banks to renewed inflation fears.
Investors are currently torn between the possibility of locking in rates near the highest levels in decades and the risk of an even greater selloff. Some strategists are warning that these losses have room to run.
This surge in yields is threatening to raise the cost of borrowing for governments, homeowners, and businesses.