U.S. Treasury yields hit their highest level in more than two decades on Thursday as the global bond sell-off deepened. The 10-year Treasury yield surpassed a level last seen in April 2002, rising 4 basis points to 5.3338%, according to LSEG data. The figure is key to rates on home loans, auto loans and credit card debt. The 30-year Treasury yield jumped 3 basis points to 5.6702%, its highest level since July 2002. The 2-year yield rose 2 basis points to 4.91%. Yields and prices move inversely. One basis point is equivalent to 0.01%. Government borrowing costs rose around the world on Thursday, continuing a trend that has been going on for months, as investors express concern about a lack of policy action to address fiscal deficits while inflation remains sticky and interest rates rise. Major economies face “persistently large deficits and rising interest expenses, challenges long associated with indebted emerging market sovereigns,” the Institute of International Finance said last week. Japan’s 10-year yield was last seen at 3.126%, the highest level in three decades. Japan’s globally influential debt has come under pressure from a weaker yen and rate hikes by the Bank of Japan. The yield on the German 10-year bond, the benchmark for the euro zone, rose 4 basis points to 3.6179%, its highest level since 2008. Elsewhere in Europe, the French 10-year bond rose 11 basis points to 4.9501%, the Italian 10-year bond rose 10 basis points. to 4.7171%, while the UK 10-year yield rose 5 basis points to 5.483%.
