Global bond yields spike as US Treasury expands buyback bid to $6 billion
Japan's 10-year bond yield climbed to 3 percent while the US 30-year yield hit its highest level since June 2007, despite a new $6 billion debt buyback program.
Global financial markets experienced a sharp selloff on Wednesday as fears over rising inflation and mounting government debt intensified following US military strikes on Iranian targets. Japan's 10-year bond yield rose to 3 percent for the first time since 1996, reflecting heightened concerns about sovereign debt levels that have exceeded $40 trillion in the United States. Simultaneously, the single-currency eurozone saw inflation reach its highest rate in three years in August, driven primarily by increased energy costs. In response to surging yields, Donald Trump's Treasury Secretary Scott Bessent announced on Wednesday that the US government would purchase up to $6 billion in longer-dated bonds starting Thursday. This latest buyback attempt aimed to improve liquidity in the secondary market and counteract yield pressures. However, the intervention proved ineffective; the yield on benchmark 10-year bonds jumped from 4.79 percent to 4.85 percent. The 30-year US Treasury yield climbed to 5.353 percent, surpassing the high set in June 2007. Bitcoin also fell below $77,000 as risk assets faced headwinds from higher-than-expected US inflation data. Oil prices surged further, with WTI crude oil crossing $100 per barrel for the first time since May. Meanwhile, Blockstream rejected demands related to a recent Liquid Network exploit involving approximately 598.5 BTC remaining after attackers claimed most of the stolen funds.
