A global bond selloff accelerated as concerns intensified over inflation and mounting piles of government debt worldwide. US 10-year Treasury yields reached their highest level since 2002 — following a similar move by 30-year Treasurys this week — helping drive bonds in Asia lower, too. Europe in particular appears vulnerable to increasing borrowing costs, with inflation in France, Germany, Italy, and Spain all exceeding analysts’ expectations.
Economists were also worried about French levels of borrowing, with Paris set to unveil a draft budget today that aims to close a yawning deficit and will likely be politically divisive; France this week announced plans for record bond sales, despite the country’s rising debt-to-GDP ratio.
