The U.S. 30-year bond yield is the highest it’s been since 2011, and globally government bond yields are at 15-year highs. Garfield Reynolds and Michael Mackenzie report in Bloomberg:
Global government bond yields extended their climb — with the US 30-year reaching the highest point since 2011 and other benchmarks returning to 2008 levels — as resilient economic data challenges the view that central banks rates are peaking.
In early US trading Thursday the 30-year Treasury yield rose as much as seven basis points to 4.42%, slightly exceeding last year’s high. It was below 4% as recently as July 31. The US 10-year yield approached 4.31%, within a few basis points of its 2022 peak. The equivalent UK yield jumped to a 15-year high, while its German counterpart approached the highest since 2011.
Treasuries have led the global debt selloff as the US economy defies expectations that more than five percentage points of Federal Reserve interest-rate hikes would cause a recession. Officials at the last policy meeting remained concerned that inflation would fail to recede, requiring further rate increases, minutes of the meeting released Wednesday showed.
Action Line: Finally, some yields you can sink your teeth into. When you want to talk about adding bonds to your portfolio, I’m here.
E.J. Smith - Your Survival Guy
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