Global renteuro: «Tiåringen» stiger til høyeste nivå siden 2002

Global renteuro: «Tiåringen» stiger til høyeste nivå siden 2002

Foreign exchange market has witnessed the interest rate on ten-year US government bonds reaching 5.33% on Thursday morning, marking the highest level since 2002, according to data provider Infront. The trend is driven by persistent inflation, massive government borrowing, and robust economic growth, which keep expectations for interest rates high. The rate on 30-year US bonds has also hit its highest level since 2002, standing at 5.67%, also according to Infront.

Chief economist Bjørn Roger Wilhelmsen of Nordkinn Asset Management notes that the trend has been ongoing. He points to recent US economic data showing lower price growth than expected the previous month, alongside Federal Reserve Chair John Williams' suggestions of a gradual interest rate increase. Despite this, long-term interest rates have continued to rise.

An unusual feature in recent days has been a sharper yield curve, indicating increased disparity between long and short-term interest rates. Not only is this phenomenon affecting US long-term rates. Interest rates on government bonds in Britain, Japan, France, and Germany have also increased in recent times.

Investors have previously pointed to increased competition in the bond market due to high demand for capital. Companies can earn more from these bonds, known as credit spreads, without facing as much risk as non-government bond securities. However, there has been a shift towards greater scrutiny of high public debt and budget deficits.

Financial Times reports that traders warn of a "bad circle" in the bond market. Meanwhile, some analysts suggest that bonds are becoming more attractive to investors due to the strong rise in interest rates. Research chief Richard Yetsenga of ANZ Australia and New Zealand Banking Group Limited tells the newspaper that the payout level now provides a reasonable compensation for further increases.