Overview
- On Thursday the US 10-year Treasury yield climbed to about 5.34%, its highest level since 2002, while the 30-year traded near 5.64% and UK 30-year gilts approached 6%.
- The benchmark 10-year posted an almost 87 basis-point rise over the September quarter, the largest quarterly jump since 1994, reflecting an accelerated global sell-off in Q3.
- Market drivers include higher oil prices tied to renewed US–Iran tensions, large government deficits with heavy sovereign issuance, plus roughly $220 billion of corporate debt sold this year by major AI firms.
- Rising yields have pushed up borrowing costs for mortgages, companies and governments, dented equity markets and triggered large foreign-equity outflows from Asian and emerging markets.
- Policymakers are weighing tools such as Treasury buybacks and central-bank bond purchases, and markets are now focused on upcoming US jobs data and further Federal Reserve commentary for direction.