Government borrowing costs in several advanced economies, including the UK, reached their highest levels since the 2008 financial crisis on Monday. Some costs even surpassed this, as investors expressed concerns that the ongoing Middle East crisis would lead to persistently high inflation.
Concerns over rising prices and government spending pushed up the cost of debt for governments in Paris, Berlin, Washington DC, Tokyo, and London. Investors are reportedly worried that rising prices could lead to increased interest rates.
The yield on 30-year US Treasury bonds rose to 5.29%, marking its highest level since 2007. In France, the 30-year bond yield reached 4.8558%, its highest since September 2008, while the 10-year yield hit its highest since June 2009 at 4.0516%. Germany's equivalent bond yield rose to 3.2138%, its highest since 2011.
UK government bond prices also dipped, which occurs when yields rise. Japan's 10-year government bond yield reached a three-decade high of 2.93%, its highest since September 1996, before a slight dip following weaker-than-expected GDP growth data.