Global bond markets are facing heavy selling pressure, with government bond yields continuing to surge on the 11th. Bond bears are pushing the benchmark U.S. Treasury yield toward the 5% mark, while soaring oil prices exacerbate inflation risks, forcing investors to consider the possibility of further monetary policy tightening by global central banks. However, U.S. Treasury Secretary Bessent dismissed market concerns regarding the Treasury’s bond buyback volume falling below the cap on Thursday and downplayed worries about the spike in yields.
The yield on the 10-year U.S. Treasury note climbed 18 basis points this week, standing at 4.967% on Friday and nearing the 5% threshold. Breaching this level could attract bargain hunters, but it might also trigger further sell-offs that spill over into global markets. Currently, the 10-year Treasury yield has risen to its highest level since 2023—approaching highs not seen since 2007—while the 30-year yield has climbed to 5.379%, its highest level since 2007