Key facts
- The 10-year US Treasury yield reached a 24-year high on Thursday.
- Global bond markets are experiencing a significant sell-off.
- Borrowing costs for governments have surged to multi-decade highs.
- France's budget bill and debt stability are under investor scrutiny.
- European stocks hit their lowest level since June.
Global bond markets experienced heavy selling on Thursday, pushing borrowing costs to multi-decade highs and signaling concerns over persistent inflation and fiscal policies. The 10-year US Treasury yield reached a new 24-year high, contributing to a broadening global bond sell-off.
France is a particular focus as investors question its budget bill and the stability of its debt, with yields reaching their highest since 2002. This widespread selling indicates investor apprehension regarding long-term inflation and the sustainability of government fiscal strategies. The turmoil began to impact broader markets, with European stocks hitting their lowest since June and bank stocks tumbling.