Global bond rout deepens as Japan's 10-year yield hits a key threshold. This was reported by Qazaqyia.kz citing Reuters.
Japan's 10-year bond yield exceeded 1.5% for the first time, heightening investor concerns. This has led to intensified selling in the global bond market, as investors worry about inflation and tighter monetary policy by central banks.
The Bank of Japan continues its yield curve control policy, but market pressure is mounting, with investors demanding higher yields. This has caused bond prices to fall across global markets, increasing volatility in international financial markets.
In the US, bond yields are also rising, with the 10-year Treasury yield reaching 4.5%. This is driven by expectations that the Federal Reserve may keep interest rates high for an extended period. Europe is seeing a similar trend, with Germany's 10-year yield climbing to 2.8%.
Analysts warn that this rout could threaten the global economy, as higher yields increase borrowing costs for governments and corporations. This could slow economic growth and potentially trigger a new financial crisis.
Japan's finance minister said he is closely monitoring the situation and will take appropriate action if needed. However, market participants believe central bank intervention may be limited, as inflationary pressures remain elevated.
The global bond rout may continue in the coming weeks as investors await central banks' next moves. This situation is likely to have significant implications for global financial markets.