Global bond selloff yields to the highest level since 2008

Global bond selloff yields to the highest level since 2008 Look at these global bond moves as we wake up this morning and confront September. In the US, year-to-date highs. Jonathan Ferro Bloomberg News INTRADAY GERMANY 10-YEAR YIELD 3.362 0.038 UK 10-YEAR YIELD 5.247 0.184 JAPAN 10-YEAR YIELD 3.006 0.049 In the US, year-to-date highs. In the UK, levels we have not seen since 2008. In Germany, 15-year highs. In Japan, three handle on a 10-year bond yield in Japan, a level we have not seen since 1996. Dani Burger Bloomberg News And how is the BOJ going to respond? How are global flows going to respond? This does complicate the narrative that the issue had been squarely with the US. That 30-year yields in the US were a problem. What we are seeing is not a rejection of Treasuries. Clearly because this is a global problem. What we are seeing is a repricing everywhere. People are demanding higher yields considering just the investor base in these treasury markets are more price sensitive. They are more often private investors than governments at this point. So what you're seeing again is just a demand for more premium. I've sensed that lost in the conversation this morning is the performance of risk assets over the last month. So let's sit on that just for a moment. Yes, yields have risen. There are plenty of reasons for it, including this massive competition for capital. But look at how well risk assets have performed. Investment grade credit spreads unchanged through the month of August in the face of record supply. High yield spreads tighter on the month, equities positive on the month. Risk appetite still pretty buoyant coming into September. It is incredibly buoyant and there is some irony in that what the Treasury did with buybacks making the long end of the curve more liquid, maybe even encourages more issuance because it allows more ease for the hyperscalers.