The yield on key U.S. Treasury bonds rose to fresh 24-year highs Wednesday, as the latest global bond sell-off picked up steam.
\n\nBenchmark government bonds in France and Italy also rose sharply and were on pace for their biggest one-day jump since March, when the launch of the Iran war rattled global markets. The yield on the U.K. 30-year government bond hit its highest level since 1998.
\n\nWhen bonds fall, their yields rise.
\n\nClosely tracking those moves, the 10-year Treasury yield rose as high as 5.35% and the 30-year Treasury yield hit 5.73% — the highest levels for each since 2002.
\n\nThe bond rout sent stocks tumbling, as investors bet that rising bond yields would raise corporate borrowing costs and cut into profits.
\n\nEurope’s broad Stoxx 600 index fell 1%. Benchmark indexes in France and Germany were off by more than 1%, and stocks in Italy on the country’s FTSE MIB index slid nearly 2.5%.
\n\nU.S. stocks also dipped Wednesday morning, just a day after both the Nasdaq and S&P 500 closed at record highs. In early trading, the S&P 500 was down 0.6% and the Nasdaq Composite declined by 0.8%.
\n\nAs stocks fell, oil prices ticked up, adding pressure…
Original source: https://www.nbcnews.com/business