US 10-year Treasury yield reaches highest level since 2002 — CNBC

In the United States, the yield on 10-year government bonds rose to 5.3338% on Thursday, the highest level since April 2002. The indicator increased by 4 basis points amid a deepening global sell-off in government debt securities, CNBC reports.

Record yield levels

The yield on 30-year US Treasury bonds increased by 3 basis points to 5.6702%, the highest level since July 2002. The yield on two-year securities rose by 2 basis points to 4.91%.

Bond yields and prices move in opposite directions: rising yields mean a decline in the value of securities. One basis point equals 0.01 percentage points. The yield on 10-year Treasury bonds is an important benchmark for mortgage rates, auto loans and credit card debt.

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Sell-off in global markets

Government borrowing costs also rose in various countries. Investors are expressing concern over insufficient policy measures to reduce budget deficits, persistent inflationary pressure and rising interest rates.

The yield on Japan's 10-year government bonds stood at 3.126%, the highest level in three decades. The yield on 10-year German Bunds rose by 4 basis points to 3.6179%, the highest level since 2008. In France, the indicator jumped by 11 basis points to 4.9501%; in Italy, by 10 basis points to 4.7171%; and in the United Kingdom, by 5 basis points to 5.483%.

The Institute of International Finance said last week that major economies are facing persistently high deficits and rising debt servicing costs.