{
  "id": 11370292,
  "title": "Global bond rout deepens, pushes US Treasury yields to 24-year peak",
  "url": "https://urgent.news/2026/10/02/global-bond-rout-deepens-pushes-us-treasury-yields-to-24-year-peak",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-02T05:24:49.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/bonds-teeter-after-us-treasuries-worst-quarter-since-1994-4926346"
  },
  "original_language": "en",
  "account": "Global bond market underwent a sharp sell-off on Thursday, resulting in borrowing costs for the US, France, and Japan climbing to multi-decade peaks. This surge in rates has heightened concerns among policymakers. Late in the US morning, bargain hunters intervened, helping to stabilize the market. The US benchmark yield dipped to approximately 5.26%, but Treasury yields across the curve continued to fall. Despite this, analysts believe there may still be room for additional selling. Rising interest rates increase costs for companies and mortgage borrowers, and force governments to allocate more funds towards interest payments. The soaring yields are primarily driven by surging energy prices, which have fueled inflation. Additionally, the rapid growth of artificial intelligence and data-center construction has intensified competition for capital, raising expectations about economic growth and potential future short-term interest rates. US 10-year Treasury yields reached 5.34%, the highest level since 2002, marking the largest quarterly increase in yields over the past century. Analysts warn that tighter financial conditions may lead to a potential slowdown, particularly considering a K-shaped economy where wealthier individuals are thriving while lower-income workers are struggling. Meanwhile, France faces challenges in passing a 2027 budget bill due to unpopular austerity measures. French 10-year borrowing costs hit their highest level since 2002, with a notable gap between French and German yields, and a record high in the cost of insuring French debt against default. The European Central Bank is under scrutiny for potential assistance to France's bond market, though this seems unlikely for now. In Britain, the 30-year government bond yield surpassed 6%, reaching its highest level since 1998, underscoring the impact of higher rates on the real economy. Japan also experienced an unprecedented fifth consecutive quarter of double-digit gains in sovereign yields due to inflation. Stronger growth has prompted markets to conclude that the economy can handle higher rates for a more extended period. Traders have shifted their expectations for US interest rate cuts this year, now anticipating at least three additional Federal Reserve hikes by mid-2027. Despite concerns in the credit market, bonds experienced the most significant selling pressure on Thursday.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}