The Economist.
Back in 2020, it felt like the era of high bond yields was well and truly over.
10-year yield sinking to record lows,
dropping below 1% for the first time in history.
In finance, six years is a long time.
We are now in the middle of a great global bond sell-off.
Economists all over the world are sounding the alarm
as bond yields are climbing and they're climbing fast.
The yield on the 30-year US Treasury bond has hit its highest level since 2007
as investors remain very worried about inflation and government borrowing.
Scott Bessent, America's Treasury Secretary,
promised buybacks to try and bring the situation under control.
We routinely do buybacks,
so we're going to increase the size of the buyback.
We have a big toolkit, so we'll see.
And a part of it is signaling here
and to show that we believe that the yields don't reflect the underlying fundamentals.
But his intervention failed to soothe investor jitters.
The bond sell-off gathers pace.
Oil surges as the US 10-year yield closes in on 5%.