Bond yields rise again following markets' recovery trend

Bond yields, which are preferred by investors in government-backed, low-risk, and fixed-income assets, began to rise as the markets stabilized.

Bond yields increased rapidly in many countries, including the United States, China, Japan, Germany, the United Kingdom, and France.

US Treasury Bonds:

• The yield on 10-year US Treasury bonds fell to 3.66% yesterday but rose by 20 basis points to 3.86% today.
• The 2-year US Treasury yield increased by 35 basis points, from 3.65% to 4%.

Germany:

• The 10-year bond yield dropped to 2.07% but rose by 15 basis points to 2.22% today.
• The 2-year bond yield, which was 2.16% yesterday, increased by 33 basis points to 2.39%.

United Kingdom:

• The 10-year bond yield was at 3.74% yesterday and rose by 21 basis points to 3.95% today.
• The 2-year bond yield increased by 20 basis points to 3.67%.

France:

• The 10-year bond yield rose by 8 basis points, from 2.90% yesterday to 2.98% today.
• The 2-year bond yield increased by 20 basis points to 2.65%.

Spain:

• The 10-year bond yield increased by 9 basis points from 3% yesterday to 3.09% today.
• The 2-year bond yield rose by 15 basis points to 2.72%.

Italy:

• The 10-year bond yield rose by 8 basis points from 3.60% yesterday to 3.68% today.
• The 2-year bond yield increased by 12 basis points to 2.91%.

Japan:

• The 10-year bond yield, which was 0.75% yesterday, rose by 16 basis points to 0.91% today.
• The 2-year bond yield increased by 4 basis points to 0.29%.

China:

• The 10-year bond yield increased by 6 basis points from 2.09% yesterday to 2.15% today.
• The 2-year bond yield remained steady at around 1.50%.

RECESSION CONCERNS TRIGGER STRONG SELLING PRESSURE

Yesterday, global markets experienced strong selling pressure due to the combination of expectations that the Bank of Japan (BoJ) might have entered an interest rate hike cycle and recession concerns in the US.

Following the market decline, the yield on the 10-year US Treasury bond fell to 3.68%, the lowest level since June 26, 2023.

A similar trend was observed in bond yields of countries such as the US, China, Japan, Germany, the UK, France, the Netherlands, and Switzerland.