Global financial markets are experiencing a sharp rise in bond yields, impacting borrowing costs and the cryptocurrency market. This trend is particularly pronounced in the U.S., U.K., eurozone, and Japan.
The Return of 5% U.S. Long Bond Yield
The yield on 30-year U.S. Treasuries has reached 5%, a level not seen since the mid-2000s. This follows a 3.1% rise in GDP and a job addition of 142,000 in August. Market participants demand higher compensation amid rising government debt.
UK Borrowing Costs at a 27-Year High
The U.K. faces challenges as the yield on 30-year gilts has surged to 5.72%. This pressures the economy, with investors wary of the Labour government's upcoming budget amid rising debt burdens.
Strained Economies in Europe and Japan
In the eurozone, German 10-year bund yields have reached 3.2%, while Japan also shows rising long-term yields. These changes are negatively affecting finances in both regions and the European Central Bank.
Financial markets are now facing uncertainty in the context of high bond yields. This poses new demands on policymakers and investors, while creating unique conditions for the cryptocurrency market.
