"Global long-term bond yields are surging, with U.S. 30-year Treasuries near 5% and U.K. gilts above 5.7%, as investors grow wary of mounting debt and political pressure on central banks. Safe-haven gold has hit a record $3,537, while economists told Fortune the bond market "can't be primaried," underscoring that investors will pull back if fiscal credibility deteriorates. As traders head into the final leg of 2025 they are not doing so with overconfidence."
"U.S. 30-year Treasuries will open a breath away from 5% today, one of their highest levels this year, following a sharp uptick since the end of last month. While yields pushing higher is one sign of a selloff, another is trading activity. That too has ticked up, increasing approximately 19% year-on-year at the end of August according to securities experts Sifma."
"But the upset isn't confined to America alone. In Europe, French government bonds-Obligations Assimilables du Trésor or OATs-similarly spiked toward a 5% yield and sit at 4.49% at the time of writing, marking its highest run since 2009. The U.K. is arguably feeling the sharpest end of the issue, with 30-year gilts pushing above 5.7%, their highest level since the spring of 1998."
Global long-term bond yields are surging, with U.S. 30-year Treasuries near 5% and U.K. 30-year gilts above 5.7%. French OAT yields climbed toward 5% and sit around 4.49%, their highest since 2009. Trading activity in U.S. Treasuries increased about 19% year-on-year at the end of August. Safe-haven gold reached a record $3,537 as investors seek alternatives. Investors are withdrawing from government debt over concerns about debt-to-GDP ratios and fiscal sustainability. If fiscal credibility deteriorates, buyers will demand higher yield premiums, potentially triggering broader selloffs and higher borrowing costs for governments.
Read at Fortune
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