Bond sell-off soars amid inflation, debt fears

Bond sell-off soars amid inflation, debt fears

Government bond yields rose in numerous countries on Tuesday, with investors selling off amid concerns over inflation and mounting public debts .

The 10-year U.S. Treasury bond yield exceeded 4.7 percent Tuesday morning, marking its highest mark since October 2023.

The 30-year Treasury bond yield, meanwhile, is still above 5.2 percent . The 30-year yield was below 5 percent in late June, but has risen over the past two months — even reaching its highest point since April 2007 in mid-August.

The rising bond yields in the U.S. hurt Americans attempting to purchase a home via higher mortgage rates. Borrowing costs for other products, such as cars, are also subject to pressures from the bond market.

Rising yields are not limited to the U.S., either. Japan’s 10-year bond yield surpassed 3 percent Tuesday before closing at 2.994 percent, the note’s highest mark in roughly 30 years .

In the U.K., the 10-year bond is trading at above 5.2 percent for the first time since July 2008 — amid the global financial crisis.

Welcome to The Hill’s Business & Economy newsletter , I’m Julia Shapero — bringing you the latest on the intersection of Wall Street and Pennsylvania Avenue.

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Key business and economic news with implications this week and beyond:

Treasury Secretary Scott Bessent said Tuesday that the Strait of Hormuz will be “worthless” to the oil industry in two years.

Apple’s Tim Cook handed over the reins as CEO to John Ternus on Tuesday, but the technology giant won’t be losing his political clout and connections to Washington.

Progressive Rep. Alexandria Ocasio-Cortez (D-N.Y.) quipped Monday that a company should build an AI data center near President Trump’s Mar-a-Lago resort, after he said communities will be “backwards and poor” if they oppose the construction of such facilities.

U.S. Trade Representative Jamieson Greer said there are no trade negotiations happening with Canada after they fell apart last month and tariffs from the Trump administration on Canadian goods went into effect.

Upcoming news themes and events we’re watching:

The Bureau of Labor Statistics releases the August jobs report Friday at 8:30 a.m. EDT.

Branch out with more stories from the day:

NEW YORK (AP) — The Federal Trade Commission and 22 states filed a lawsuit against online retailer …

Business and economic news we’ve flagged from other outlets:

Wall Street ends lower as higher yields, rising oil prices mark shaky start to September ( Reuters )

Fed Governor Barr says he’ll support rate hike if inflation doesn’t ease ( CNBC )

The House on Tuesday voted to send a short-term extension of government funding to President Trump’s desk, avoiding a politically risky shutdown before the midterm elections. Read more

Two Democrats took the unusual step of voting with Republicans to advance a batch of GOP-backed bills, preventing a handful of conservatives from tanking the vote and effectively saving Speaker Mike Johnson’s (R-La.) agenda for the week. Read more

Opinions related to business and economic issues submitted to The Hill: