US Treasury yields continued to rise on Monday as global bond markets sold off and G7 finance ministers met in Paris.
of 10 years US Treasury Treasury yields, a key measure of U.S. government borrowing, rose 1 basis point early to 4.601%, the highest level in 15 months.
something older 30 year government bond Yield sensitive to political risk remains unchanged at 5.128%
of 2 year Treasury bill The yield, which tends to react in line with the Federal Reserve’s short-term interest rate decisions, rose one basis point to 4.086%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Treasury Secretary Scott Bessent joined his G7 colleagues and central bankers in Paris on Monday, as fresh concerns about inflation and public debt weigh on global bond markets.
Asked if she was worried about bond market volatility, European Central Bank President Christine Lagarde said: “I always worry. That’s my job.”
U.S. Treasury yields soared last week, with the 10-year Treasury yield rising 14 basis points, as new Federal Reserve Chairman Kevin Warsh faces higher consumer prices and higher import costs.
The recent rise in borrowing costs resonated in global markets on Monday ahead of the G7 finance ministers and central bank governors meeting that will later be held in Paris.
yield 10-year German Bundestag Japan’s 10-year government bond rose more than 2 basis points to 3.1827%, while Japan’s 10-year government bond rose 13 basis points to 2.739%.
In the UK, the yield is 10 years giltsA measure of UK government debt eased slightly. Yields fell by about 1 basis point on the initial deal, but are still rising at 5.169% amid uncertainty over the fate of British Prime Minister Keir Starmer. of 30 years gilt The yield fell by about 3 basis points to 5.818%.
Will Hobbs, chief investment officer at Brooks MacDonald, said central bankers now face a tightrope on interest rates as the economic fallout from the Middle East conflict is front and center at the G7 summit.
“Inflation is going to be a difficult and troublesome problem for central banks and bond investors,” Hobbs said Monday on CNBC’s “Europe Early Edition.”
Oil prices rose again on Monday, brent crude oilthe international benchmark, rose 1.8% to $111.16 per barrel, while the U.S. west texas intermediate Futures were last trading at $107.56 per barrel, up more than 2%.
Lizzie Galbraith, a senior political economist at the University of Aberdeen, said the energy price shock and ongoing UK political turmoil could lead to a decisive shift to the left under a new Labor prime minister, introducing an “additional risk premium” to UK government bonds.
