US 30-year Treasury yields rose on Tuesday, adding over 1 basis point to trade at around 5.322%. This figure hovers just below its highest level since 2002 and represents the highest yield in almost two decades.
The surge reflects investor angst over a flood of long-dated bond sales and a surging national debt. Additionally, inflation has remained above the Federal Reserve’s target for the past five years.
International government bond yields followed US Treasury yields higher on Tuesday. Global bonds were further weighed down by longstanding concerns regarding fiscal stability in countries such as Britain and the US.
European government bonds also experienced significant selling pressure. France’s 10-year bond yield hit a 17-year high, while Germany’s 10-year Bund yield reached its highest level since 2011.