Government borrowing costs hit multi-year highs as markets fear inflation, and oil and gas prices rise – business live
Summary
Government borrowing costs are rising to their highest levels in many years in France, Germany, Japan, and the United States. Investors worry that inflation will stay high because of the Middle East crisis, causing bond yields to increase as countries pay more interest to borrow money.Key Facts
- French 30-year bond yields reached 4.8558%, the highest since 2008.
- Germany’s 10-year bond yield rose to 3.2138%, the highest since 2011.
- Japan’s 10-year government bond yield hit 2.93%, the highest since 1996.
- The US 30-year Treasury yield climbed to 5.29%, the highest since 2007.
- Investors expect central banks to raise interest rates to control inflation.
- Japan faces a dilemma between supporting growth and managing inflation.
- Rising oil and gas prices contribute to inflation concerns.
- Government debt is more expensive to finance due to higher borrowing costs.
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