Global Bond Yields Soar Amid Economic Concerns
Global bond markets experience a slide in long-dated bonds, with soaring yields amidst concerns over government debt and economic growth. Japan's 30-year government bond yield hit an unprecedented high. Investors are focused on U.S. labor data and European services data for insights on future interest rate cuts.
The global bond market is witnessing a downturn in long-dated bonds, with Asia feeling the ripple effect on Wednesday as concerns regarding government debt and economic growth persist. Gold prices climbed as Japanese government bonds reached record-high yields.
Japan's 30-year government bond yield surged to 3.255%, mirroring the increase seen in U.S. and British bonds overnight. The Nikkei share index suffered losses, influenced by Wall Street declines due to ongoing U.S. manufacturing contraction. Market players are now tuned to European service data and critical U.S. labor figures for clues on the economic trajectory.
Markets are betting on a Federal Reserve interest rate cut later this month. U.S. President Donald Trump's tariff policies add layers of complexity, with investors wary of government deficits and potential effects on bond issuance. Spot gold reached new peaks, highlighting a shift toward safe-haven assets.
(With inputs from agencies.)
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