Global stocks sink as US bond yields hit 2007 levels

hl.co.uk:

We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

Unexpected rise in US job openings sparks steep sell-off

Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

05 Oct 2023

Global stocks fell on Tuesday as US bond yields surged to 16-year highs amid fresh concerns that the Federal Reserve will need to keep interest rates higher for longer.

Treasury yields soared after new data showed that the US jobs market remains remarkably resilient in the face of spiralling interest rates.

The number of US job openings unexpectedly increased from 8.9m in July to 9.6m in August, according to the Bureau of Labour Statistics’ Job Openings and Labour Turnover Survey, known as JOLTS.

This is much higher than economists’ predictions that job openings would remain flat.

It fuelled investor concerns that the Federal Reserve will need to keep interest rates elevated as it battles to control inflation.

The figures sparked a sell-off in the global bond market which pushed 10-year and 30-year yields to their highest levels since 2007, with the longer-term Treasury trading above 4.9pc.

It came as the average 30-year fixed mortgage rate jumped to 7.72pc on Tuesday, reaching levels