The yields on key U.S. Treasury bonds touched fresh 24-year highs Wednesday as the latest global bond sell-off picked up steam.<\/p>\n
The 10-year Treasury yield rose as high as 5.36%, and the 30-year Treasury yield hit 5.73% \u2014 the highest for each since 2002. <\/p>\n
Benchmark government bonds in France and Italy also rose sharply. The yield on the U.K. 30-year government bond hit its highest level since 1998.<\/p>\n
When bonds fall, their yields rise.<\/p>\n
U.S. bond yields pulled back later in the day following a Treasury Department auction of $39 billion worth of 10-year bonds, for which there was strong demand. <\/p>\n
But at 5.3%, the yield on the auctioned bonds was the highest of any U.S. government sale of 10-year debt since November 2000.<\/p>\n
\u201cBottom line, for whatever reason, likely the 24 yr highs in rates, brought out the buyers and resulted in a great auction,\u201d wrote Peter Boockvar, chief investment officer at One Point BFG Wealth Partners. \u201cIn response, the 10 yr yield has backed off to 5.27% from 5.31% just prior to the results.\u201d<\/p>\n
The bond rout had sent stocks tumbling early in the day, but as the decades-high yields eased, so did losses among the major stock indexes.<\/p>\n
After they notched record highs Tuesday, the S&P 500 and the Nasdaq ended the day down about 0.2%. The Dow fell 341 points, or 0.6%. The Russell 2000, which tracks small and midsize companies, declined 1.3%.<\/p>\n
European stock markets had seen steeper selling. The Stoxx 600 index ended lower by 1%, while benchmark indexes in France and Germany closed down by around 1.3%. Italy\u2019s FTSE MIB index slid 2.5%. <\/p>\n
As stocks fell, oil prices flipped between gains and losses but largely hovered around their highly elevated levels. Brent crude oil declined 0.5% but was still at more than $100 per barrel in afternoon trading.<\/p>\n
A looming debt crisis<\/p>\n
The recent rise in bond yields only compounds the pain for governments around the world whose borrowing costs have soared since the start of the year.<\/p>\n
Overnight, International Monetary Fund chief Kristalina Georgieva warned that governments urgently need to take steps to get their unprecedented debt under control. <\/p>\n
She also predicted that government bond yields around the world would remain under pressure because of the ever-expanding artificial intelligence boom.<\/p>\n
\u201cPolicymakers had a relatively easy ride over the last 17 years, as for all that time interest rates were stuck below GDP growth rates,\u201d Georgieva said in a speech<\/a>. \u201cHigher interest rates now put an end to that.\u201d<\/p>\n Her comments followed multiple<\/a> reports<\/a> that Elon Musk\u2019s SpaceX plans to raise $40 billion in cash to buy AI chips from Nvidia. NBC News has not independently confirmed the reports, and SpaceX did not immediately reply to a request for comment.<\/p>\n If the company follows through, that borrowed $40 billion would join hundreds of billions more in bond sales by AI-linked companies in recent years. The companies are using the money to build data centers and buy equipment with which to fill them.<\/p>\n Some economists believe the vast sums of money being borrowed by private AI companies could pile additional pressure on government bond yields.<\/p>\n \u201cFrance may be on the verge of a full-blown debt crisis,\u201d Ed Yardeni, president of Yardeni Research, wrote Sunday.<\/p>\n He noted that the yield on 10-year government bonds in France has risen the most of any major economy this year. Coming in second is the U.S., while Italy, a country the bond markets traditionally view as far riskier, comes in third. <\/p>\n Apollo economic strategist Huw van Steenis wrote in a note Wednesday, \u201cHyperscalers have raised $48 billion in bonds in European currencies this year, which is already more than triple the entire amount of 2025.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The yields on key U.S. Treasury bonds touched fresh 24-year highs Wednesday as the latest global bond sell-off…\n","protected":false},"author":2,"featured_media":639716,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-639715","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/639715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=639715"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/639715\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/639716"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=639715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=639715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=639715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}