By Ankur Banerjee, Harry Robertson and Laura Matthews
SINGAPORE/LONDON/NEW YORK, Sept 2 (Reuters) - Bond prices continued to slide in Asia and Europe on Wednesday, pushing borrowing costs to multi-decade highs as the Middle East conflict drives up energy prices and layers concerns about inflation on top of worries about ballooning government debt.
Sovereign bond yields are a reference point for ******* et prices across financial markets and the higher price of money means elevated mortgage rates for consumers and tough choices for government spending as funding costs climb.
Japan's 10-year yield was perched above 3% for the first time in 30 years, while rising gas prices meant German 10-year Bund yields were stuck at their highest since 2011 and Britain's equivalent was at its highest since 2008. Yields rise as prices fall and vice versa.
A confluence of factors was at play, said State Street's head of macro strategy, Michael Metcalfe, with rising energy prices causing traders to bet on rate hikes, pushing up short-dated yields.
#prices #yields #bond #costs
SINGAPORE/LONDON/NEW YORK, Sept 2 (Reuters) - Bond prices continued to slide in Asia and Europe on Wednesday, pushing borrowing costs to multi-decade highs as the Middle East conflict drives up energy prices and layers concerns about inflation on top of worries about ballooning government debt.
Sovereign bond yields are a reference point for ******* et prices across financial markets and the higher price of money means elevated mortgage rates for consumers and tough choices for government spending as funding costs climb.
Japan's 10-year yield was perched above 3% for the first time in 30 years, while rising gas prices meant German 10-year Bund yields were stuck at their highest since 2011 and Britain's equivalent was at its highest since 2008. Yields rise as prices fall and vice versa.
A confluence of factors was at play, said State Street's head of macro strategy, Michael Metcalfe, with rising energy prices causing traders to bet on rate hikes, pushing up short-dated yields.
#prices #yields #bond #costs
19 hours ago
