Global bond yields reach levels investors last saw before the financial crisis
Eric Robertsen, head of global research and chief strategist at Standard Chartered, told the Financial Times that borrowing is rising as funding costs climb.
Fiscal positions are not improving anywhere, and until that shifts, “the long end doesn’t have an anchor,” he said.
Bloomberg reported that a surge in borrowing by US technology firms to fund artificial intelligence is potentially crowding out demand for sovereign bonds, and the Financial Times cited investors making the same point about hyperscalers.
The S&P 500 fell 0.7 percent and the Nasdaq Composite fell 1 percent, according to CNN, with Bloomberg noting the MSCI All Country World Index is down about 1 percent from its mid-August record.
Gold fell 2.69 percent to US$4,328.60 an ounce, Reuters reported, attributing the drop to elevated Treasury yields and a stronger US dollar.
