Treasury Long Bond Reaches 2% Milestone as Global Yields Awaken
- Move reflects U.S. stimulus bets, rising inflation expectation
- Weekend comments by Yellen, Lagarde also weigh on bonds
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Bonds slid across the world to send yields to the highest in nearly a year, fueled by prospects for U.S. stimulus and expectations for quicker inflation.
The selloff pushed the yield on 30-year Treasuries up by as much as three basis points to 2%, the highest since February 2020. The milestone is psychologically important, in part because 2% is the Federal Reserve’s goal for consumer prices. Yields from the U.K., Japan and Australia followed suit, hitting levels last seen during market turmoil in March.