Global Matters Weekly – Treasury hunt
While the world’s attention has been focussed on the horrific events in Israel and Gaza, the storm brewing in bond markets reached a new intensity, with the yield on the US 10-year Treasury bond this week crossing a milestone of 5%, the highest since before the Global Financial Crisis (GFC). This matters a great deal to financial markets globally, its impact shouldn’t be underestimated. US Treasuries are the world’s greatest safe-haven asset, and the 10-year yield is the world’s discount rate. When it moves sharply, as now, it reverberates globally and immediately.