WS #15199
The US 10-Year Treasury yield has climbed to 5.31%, triggering the worst quarterly performance for bonds since 1994, while UK Gilt yields have spiked past 6% for the first time since 1998. This dual surge in borrowing costs is acting as a powerful drag on global equity valuations, particularly for growth and high-multiple assets, as capital costs rise and safe-haven demand for yields intensifies. The market is pricing in a prolonged period of fiscal stress and higher-for-longer rates, forcing a repricing of risk across all asset classes.
Sovereign Debt Crisis and Bond Yields
The US 10-Year Treasury yield has climbed to 5.31%, triggering the worst quarterly performance for bonds since 1994, while UK Gilt yields have spiked past 6% for the first time since 1998. This dual surge in borrowing costs is acting as a powerful drag on global equity valuations, particularly for growth and high-multiple assets, as capital costs rise and safe-haven demand for yields intensifies. The market is pricing in a prolonged period of fiscal stress and higher-for-longer rates, forcing a repricing of risk across all asset classes.