{"id":72693,"date":"2026-10-07T06:08:15","date_gmt":"2026-10-07T10:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-bond-selloff-intensifies-as-us-30-year-yield-hits-24-year-high\/72693\/"},"modified":"2026-10-07T06:08:15","modified_gmt":"2026-10-07T10:08:15","slug":"global-bond-selloff-intensifies-as-us-30-year-yield-hits-24-year-high","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-bond-selloff-intensifies-as-us-30-year-yield-hits-24-year-high\/72693\/","title":{"rendered":"Global Bond Selloff Intensifies as US 30-Year Yield Hits 24-Year High"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US 30-year Treasury yields surged 5 basis points to 5.70%<\/strong>, marking the highest level since 2002 as a global bond selloff deepens.<\/li>\n<li><strong>The French government is prepared to bypass parliament<\/strong> using special constitutional powers to force through billions in spending cuts to address its ballooning debt.<\/li>\n<li><strong>ECB Governing Council member Primo\u017e Dolenc<\/strong> stated that current interest rate levels provide &quot;ample flexibility&quot; for future policy decisions amid persistent inflation.<\/li>\n<li><strong>GlobalWafers (<a href=\"\/stock\/6488\">6488<\/a>) reported a 13.1% decline in September sales<\/strong>, reflecting continued softening in the semiconductor materials market.<\/li>\n<\/ul>\n<h2>US Treasury Yields Reach Multi-Decade Highs<\/h2>\n<p>The <strong>US 30-year Treasury yield<\/strong> climbed to <strong>5.70%<\/strong> on Wednesday, a level not seen in 24 years. This latest spike follows a relentless selloff in the $32 trillion Treasury market, driven by a combination of <strong>rising energy costs<\/strong>, heavy government bond issuance, and expectations that the Federal Reserve will keep interest rates higher for longer.<\/p>\n<p>Market participants are increasingly concerned about the &quot;higher-for-longer&quot; narrative as <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> remain volatile due to geopolitical tensions. Analysts at Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) noted that investors are demanding higher compensation to hold long-term debt, with some now eyeing the <strong>6.0% milestone<\/strong> for the 10-year yield if inflationary pressures do not abate.<\/p>\n<h2>France Considers Constitutional Bypass for Budget Cuts<\/h2>\n<p>In Europe, the French government has signaled it is willing to exercise <strong>Article 49.3 of the constitution<\/strong> to bypass parliamentary approval for its 2027 budget. Finance Minister <strong>Roland Lescure<\/strong> indicated that the move may be necessary to secure <strong>\u20ac43 billion to \u20ac54 billion in spending cuts<\/strong> if negotiations with opposition parties stall.<\/p>\n<p>The proposed austerity measures aim to reduce France&#39;s budget deficit to <strong>5% of GDP<\/strong>, down from current elevated levels. However, the move carries significant political risk, as it typically triggers a <strong>no-confidence motion<\/strong> that could threaten the government&#39;s survival. Markets are closely monitoring the <strong>OAT-Bund spread<\/strong> for signs of fiscal instability.<\/p>\n<h2>ECB Maintains Policy Flexibility<\/h2>\n<p>European Central Bank (ECB) official <strong>Primo\u017e Dolenc<\/strong> emphasized on Wednesday that the current restrictive interest rate environment gives policymakers the &quot;flexibility&quot; needed to navigate economic uncertainty. The ECB recently raised its deposit rate to <strong>2.50%<\/strong> in September, its second hike of 2026, to combat inflation fueled by the Middle East energy shock.<\/p>\n<p>While the ECB remains data-dependent, futures markets are currently pricing in a <strong>60% chance of another 25-basis-point hike<\/strong> at the October 29 meeting. The central bank&#39;s staff projections now see headline inflation averaging <strong>3.0% in 2026<\/strong>, well above the 2% medium-term target.<\/p>\n<h2>GlobalWafers Sales Slump Amid Tech Softening<\/h2>\n<p>In the corporate sector, <strong>GlobalWafers (<a href=\"\/stock\/6488\">6488<\/a>)<\/strong> reported September revenue of <strong>NT$5.13 billion<\/strong>, representing a <strong>13.1% year-over-year decline<\/strong>. The drop highlights the ongoing challenges in the semiconductor supply chain as demand for non-AI related chips remains sluggish.<\/p>\n<p>The divergence in the tech sector was further evidenced by the <strong>PHLX Semiconductor Index<\/strong> falling roughly <strong>0.7%<\/strong> earlier this week, even as the Nasdaq Composite hit record highs. Investors remain cautious as high borrowing costs begin to squeeze capital expenditure across the broader technology landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US 30-year Treasury yields surged 5 basis points to 5.70%, marking the highest level since 2002 as a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[4037,4222,5073,5482,6404,22987,22988],"class_list":["post-72693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-ecb","tag-interest-rates","tag-france","tag-us-treasury","tag-bond-market","tag-globalwafers","tag-6488-tw"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/72693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=72693"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/72693\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=72693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=72693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=72693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}