Global bond crisis deepens as yields hit 24-year high

Global markets are facing a severe bond crisis, with yields rising to their highest levels in over 20 years, leading to increased borrowing costs in the United States, France, and Japan. In America, the 10-year Treasury bond yield reached 5.34%, the highest since 2002, indicating a struggling "K-shaped" economic model that favors the upper classes while income for the lower tiers continues to decline. This has resulted in escalating costs for government and corporate financing, along with a surge in bond interest expenses, which in 2023 exceeded $3.3 trillion for advanced economies—outpacing spending on defense and technology. France has also seen its 10-year borrowing costs rise to levels not recorded since 2002. Under pressure from these increases, the European Central Bank faces questions about supporting the French bond market amidst hotter-than-expected European inflation data. Overall, these rising yields threaten to slow economic growth and increase the risks of a global slowdown, as markets continue to sell off assets and exhibit heightened volatility.

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