US long-term borrowing costs rise to 25-year high, as inflation fears hit bond sale – business live
Rolling coverage of the latest and economic news, as US sells 30-year bonds at highest borrowing costs since 2001 Concern abour rising US borrowing costs was one reason Washington worked with Tokyo to prop up the Japanese yen earlier this month . The US was concerned that Japan’s government might sell some of its holding of Treasury bonds in an attempt to stabilize its currency, so took part in a…
On Thursday, the US government sold $25 billion worth of 30-year Treasury bonds at a yield of 5.216%, marking the highest borrowing costs since 2001, according to business live coverage. This occurred amid investor concerns over inflation risks and the nation's increasing debt, with bond yields rising as prices fell. Michal Stanczyk, portfolio manager at Allspring Global Investments, notes that investors are absorbing larger government debt supplies while still facing large deficits and inflation uncertainties. If this trend continues, long-term yields may rise above 5%, the source reports.
Meanwhile, the UK's FTSE 100 stock index posted its first weekly decline in a month, closing at 10,750 points, down 0.2%. Mining stocks led the drop, with Antofagasta falling 4.5% and Glencore losing 2.1%. The UK government is reportedly considering reviewing its electric vehicle sales targets, which may hinder investments in EV charging infrastructure, according to the UK Sustainable Investment and Finance Association CEO James Alexander.
The review could create uncertainty for investors in the charging network, potentially jeopardizing capital flow into the sector.
In the US, consumer confidence has dropped, particularly among Republican voters, according to the University of Michigan's latest index. Consumer morale declined by around 8% in August, with Republicans experiencing the strongest decline. Inflation expectations have risen due to energy cost hikes, with year-ahead inflation expectations increasing from 4.2% in July to 4.3% in August.
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