Global bond yields are nearing 4% for the first time since 2007, with overall US Treasury rates hitting a 20-year high.
On Monday, as oil prices rose, government bond yields across all maturities climbed by 7 to 8 basis points, pushing the Bloomberg Global Aggregate Bond Index close to 4% for the first time since 2007. Overall U.S. interest rates have reached a 20-year high, with the 30-year government bond yield surging to its highest level since 2004, and the 10-year real yield hitting a new high since the Lehman Brothers bankruptcy. Persistently high energy prices and geopolitical conflicts are exacerbating inflationary pressures. The swap market has fully priced in at least three 25-basis-point rate hikes by the Federal Reserve within the next 12 months, with the possibility of a fourth hike.
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