Long-dated government bonds worldwide tumbled on growing fears of excessive government spending, rising inflation, and political instability.
Yields on 30-year US Treasurys neared 5%, Japan saw 20-year and 30-year yields jump, and long-maturity British, French, and German bonds all slumped. In Washington, traders feared a recent court ruling, which found that most of US President Donald Trump’s tariffs were illegal, could curtail a fiscal windfall.
The prospect of governments being ousted in Tokyo and Paris fueled further uncertainty, while investors voiced worry over expansive deficit spending in London and Berlin. “The bond market is telling you, not just here but everywhere else, it is worried about the path that we are on,” one analyst told Bloomberg.