The yield on America's longest-term treasury bonds climbed to its highest level in more than 20 years, the latest milestone in a wave of global sell-offs driven by concerns about inflation and pressure on government debt burdens. Oil prices jumped again on Thursday, driving US 5-year to 30-year Treasury yields to a multi-year high in the intraday period. Among them, the yield on 30-year treasury bonds rose as high as 6 basis points to 5.46%, the highest level since 2004. European treasury yields were also generally higher; Japanese treasury yields also hit levels since 1996 when the market reopened after a three-day hiatus. Rising borrowing costs are putting pressure on global stock markets. According to the Bloomberg Global Composite Treasury Bond Index, the average yield on global government debt is now close to 4%, the highest level since 2007. This is another reminder that the era of low yields is over, and the market is dealing with the inflationary impact of the Iran war, the strong performance of the US economy, and pressure from governments and technology companies to issue large amounts of bonds. Dave Aspell, Co-Chief Investment Officer of Mount Lucas Management LP, said, “This trend is very rare in the bond market.” He is currently shorting the 10-year treasury bonds of the United Kingdom, Germany, Canada, Japan, and the United States. He added: “The Federal Reserve raised interest rates again, and inflation clearly fell short of the target. The economic performance is fair, and the scale of government expenditure is huge.”

The yield on America's longest-term treasury bonds climbed to its highest level in more than 20 years, the latest milestone in a wave of global sell-offs driven by concerns about inflation and pressure on government debt burdens. Oil prices jumped again on Thursday, driving US 5-year to 30-year Treasury yields to a multi-year high in the intraday period. Among them, the yield on 30-year treasury bonds rose as high as 6 basis points to 5.46%, the highest level since 2004. European treasury yields were also generally higher; Japanese treasury yields also hit levels since 1996 when the market reopened after a three-day hiatus. Rising borrowing costs are putting pressure on global stock markets. According to the Bloomberg Global Composite Treasury Bond Index, the average yield on global government debt is now close to 4%, the highest level since 2007. This is another reminder that the era of low yields is over, and the market is dealing with the inflationary impact of the Iran war, the strong performance of the US economy, and pressure from governments and technology companies to issue large amounts of bonds. Dave Aspell, Co-Chief Investment Officer of Mount Lucas Management LP, said, “This trend is very rare in the bond market.” He is currently shorting the 10-year treasury bonds of the United Kingdom, Germany, Canada, Japan, and the United States. He added: “The Federal Reserve raised interest rates again, and inflation clearly fell short of the target. The economic performance is fair, and the scale of government expenditure is huge.”