{
  "id": 11214293,
  "title": "US Treasury yields hit highest since 2002 as global bond sell-off deepens",
  "url": "https://urgent.news/2026/10/01/us-treasury-yields-hit-highest-since-2002-as-global-bond-sell-off",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T14:53:28.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/money-and-banking/us-treasury-yields-hit-highest-since-2002-as-global-bond-sell-off-deepens/article71533609.ece"
  },
  "original_language": "en",
  "account": "Global bond prices experienced a significant sell-off on Thursday, driving up borrowing costs across the US, France, and Japan to levels not observed in decades. Higher rates lead to increased financing expenses for businesses and homeowners, as well as higher interest payments for governments, leaving fewer resources for other expenditures. Bond yields, which increase when prices decline, have surged globally due to surging energy costs fueling inflation. The boom in artificial intelligence and data center construction has heightened competition for capital, raising expectations about economic growth and short-term interest rate settlements. The US 10-year Treasury yield, a key indicator for global borrowing costs and asset prices, rose to 5.34%, its highest level since 2002 and the largest quarterly increase in the past decade. While there is some buying interest, the global benchmark briefly touched 5.32%, but further adjustments may still occur. Financial markets are in the process of determining a new long-term benchmark, according to HSBC's chief Asia economist, Fred Neumann. Markets are responding to years of inflation above target levels, with central banks expected to implement monetary tightening measures. However, it is also crucial to recognize that expansionary fiscal policies are equally responsible for persistent inflation. France is a focal point for bond investors, as its government presents a 2027 budget bill on Thursday, which may struggle to pass unpopular austerity measures in parliament. French 10-year borrowing costs hit their highest level since 2002 on Thursday, trading near the 5% mark after its worst quarterly performance since 1987 between June and September. The spread between French and German 10-year borrowing costs is at its highest since the euro zone debt crisis in the 2010s, and the cost of insuring French debt against default is at its peak since 2013. The European Central Bank is under scrutiny for potential intervention to support France's bond market, although market participants doubt this will happen. Global yields have been rising, and advanced economies paid over $3.3 trillion in interest on international government bonds last year, surpassing spending on AI, defense, or clean energy. In the UK, the 30-year government bond yield surpassed 6%, its highest since 1998, reflecting the impact of higher rates on the real economy. The UK's slowest growth in house prices in nearly two years also highlights the consequences of elevated rates. Japan's inflation, after decades of deflation, has led to sovereign yields setting an unprecedented fifth consecutive quarter of double-digit gains. Global economic growth data is also playing a role, with factory activity across Europe and Asia expanding last month, driven by AI-related investments. Central banks are less concerned about the consequences of tightening policy due to stronger growth. Traders have revised their expectations for US interest rate cuts this year, now anticipating at least three more hikes before mid-2027, despite cooler inflation data on Wednesday easing near-term concerns. European inflation has been hotter than expected, with the European Central Bank raising rates twice this year, and markets pricing three additional 25-basis-point increases by mid-2027. While stocks, credit markets, and bonds have experienced nervousness, bond selling has not reached the intensity seen in previous episodes. Experts believe that higher rates may not be a showstopper at this stage, as there is still significant positive momentum from AI-related investments and earnings.",
  "summary": "Rising energy costs, persistent inflation and stronger growth expectations are reshaping bond markets as investors reassess long-term borrowing costs globally",
  "key_points": [
    "US 10-year Treasury yield hits 5.34%, highest since 2002",
    "Global bond sell-off deepens, driving up borrowing costs",
    "France's 10-year yield reaches 5% level, budget bill faces challenges"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Bloomberg",
        "title": "Odd Lots: Why Are Global Bond and US Treasury Yields Rising?",
        "url": "https://urgent.news/2026/10/01/odd-lots-why-are-global-bond-and-us-treasury-yields-rising",
        "published": "2026-10-01T14:19:25.000Z"
      },
      {
        "outlet": "The Hill",
        "title": "10-year Treasury yields hit 24-year high",
        "url": "https://urgent.news/2026/10/01/10-year-treasury-yields-hit-24-year-high",
        "published": "2026-10-01T14:38:20.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}