Global Bond Sell-Off Resumes as 30-Year US Treasury Yield Hits 2002 High

Global financial markets faced renewed pressure on sovereign debt as a severe sell-off resumed across major economies. Long-term borrowing costs escalated sharply, driven by expectations of prolonged higher interest rates from major central banks. The renewed rout reflected persistent inflation worries and expanding government debt issuance, which triggered sharp declines in bond prices worldwide.\n\nThe benchmark 30-year US Treasury yield surged past critical psychological thresholds, reaching its highest level since 2002. European sovereign debt markets tracked the decline in US paper, with French and Italian government bonds facing intense selling pressure. In the United Kingdom, benchmark 30-year gilt yields rose substantially as investors demanded a higher term premium to hold sovereign debt amid uncertain macroeconomic conditions.\n\nThe global debt market rout comes after central bankers, including officials at the US Federal Reserve, reiterated their intention to keep policy rates elevated until price pressures sustainably return to their targets. Resilience in economic indicators, combined with massive fiscal deficits requiring heavy sovereign bond issuance, has disrupted previous expectations of prompt monetary easing. Investors are recalibrating portfolios to reflect this 'higher-for-longer' interest rate environment.\n\nMarket analysts warn that the continuous surge in yields threatens to tighten broader financial conditions, elevating borrowing costs for corporations and consumers alike. Equity markets have shown heightened volatility as risk-free government returns become increasingly attractive relative to riskier assets. With central bank meetings looming, traders anticipate continued fluctuations across fixed-income markets as investors search for a stable yield plateau.