Global Bond Market Turmoil Fuels Gold Surge

Global concerns over government debt sustainability and inflation sent Japan's long-dated bond yields to record highs, with similar impacts in the UK and US. Spot gold prices peaked as investors sought safe-haven assets. The turmoil puts pressure on governments and shifts investment away from foreign bonds.

Amid ongoing global concerns over government debt sustainability and rising inflation, long-dated bond yields in Japan reached unprecedented levels, following similar trends in the UK and US. Investors continue to shift away from traditionally low-risk government debt, spiking interest in alternative safe-haven assets like gold, which hit a record high.

Japan's 30-year government bond yield rose to 3.255%, while the UK and US saw their long-term borrowing costs increase, reflecting anxieties about fiscal policy and debt levels. Experts suggest these rising yields could have broad implications across various asset classes.

As European bond markets fluctuate, the ripple effects are influencing currency values, including the British pound and Japanese yen. Meanwhile, market analysts closely watch U.S. data releases and policy actions for signals of economic direction, with expectations of an imminent interest rate reduction by the Federal Reserve.

(With inputs from agencies.)