Global bond markets are under pressure as yields rise, sparking concerns about government finances and borrowing costs. The U.S. 10-year Treasury yield hit a 14-month high on Monday. Japan's 10-year bond yield surged to a 13-year high, and India's 10-year yield climbed to a two-month peak. In contrast, China's bond market saw record lows, prompting central bank intervention. Analysts cite fewer anticipated Fed rate cuts, rising deficits, and elevated debt issuance as key drivers of the sell-off. Higher yields are increasing debt servicing costs for governments and businesses, potentially dampening economic growth and consumer confidence.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Global bond markets are under pressure as yields rise,
00:05sparking concerns about government finances and borrowing costs.
00:08The U.S. 10-year Treasury yield hit a 14-month high on Monday.
00:12Japan's 10-year bond surged to a 13-year high,
00:14and India's 10-year yield climbed to a two-month peak.
00:17In contrast, China's bond market saw record lows,
00:21prompting central bank intervention.
00:23Analysts cite fewer anticipated Fed rate cuts,
00:26rising deficits, and elevated debt issuance
00:28as key drivers of the selloff.
00:30Higher yields are increasing debt servicing costs for governments and businesses,
00:34potentially dampening economic growth and consumer confidence.