Bonds steady as French borrowing costs hit 24-year high and UK 30-year yields top 6%
Government bond markets steadied on Friday morning after a sell-off pushed France's 10-year borrowing costs to their highest since 2002, lifted UK 30-year yields above 6% for the first time since 1998 and drove the benchmark US 10-year yield to a 24-year high.
Bond markets steadied on Friday after hitting multi-decade high borrowing costs on Thursday. Yields fell as Brent crude prices slipped, easing inflation concerns. In the UK, the 30-year bond yield dropped to around 5.92% from a peak of over 6% earlier in the week. France's 10-year yield, which hit a 24-year high of 4.96% on Thursday, eased to about 4.92% on Friday.
French bonds faced pressure due to a projected €43 billion in new savings to reduce the deficit and the country's record debt at 119% of GDP. French Finance Minister Roland Lescure maintained that France's creditworthiness remained solid, while the High Council of Public Finances expressed doubt about the government's growth forecast.
Inflation concerns also weighed on markets, with eurozone inflation rising to 3.8% in September, the highest in three years.
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