Foreign Media: Global Bond Markets Issue Fiscal and Inflation Risk Warnings to Governments
The yield on U.S. 30-year Treasury bonds has broken through 5%, reaching its highest level since 2007; Japan’s 10-year bond yield is approaching 3%, hitting a three-decade high; long-term yields in Germany and France have also risen to multi-year peaks.
Main driving factors include: the U.S. government debt nearing $40 trillion; ongoing Iran conflict pushing oil prices above $90; tech giants taking on massive debt for AI infrastructure, competing with government bonds for capital; and the U.S. tariff refund policy exacerbating fiscal pressure.
Japanese investors, drawn by increased attractiveness of domestic bonds, have reduced their holdings of U.S. Treasuries, leading to a decline in foreign ownership of U.S. debt in June. Market concerns are growing that the low-interest, low-inflation era following the financial crisis may be ending—losing the key psychological threshold of 5% for U.S. Treasury yields could undermine market confidence.
Original article: toutiao.com/article/1873877288997964/
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