Bond markets functioning in orderly manner, IMF says

Global bond markets ​are still functioning in an ‌orderly fashion, ​the International Monetary Fund said on Thursday, following the recent sharp rise in ‌yields that has driven world borrowing costs to their highest levels in decades.

The 10-year US Treasury yield, the yardstick for global borrowing costs ‌and asset prices, rose as high as 5.34% on Thursday, ‌reaching its highest point since 2002. It also posted its biggest quarterly rise this century in the three months to September, with the selling pressure ⁠pulsing through ​other major countries' ⁠markets from France and Britain in Europe to Japan in Asia.

"What we ⁠see globally is that bond markets are continuing to function in an ​orderly manner," IMF spokesperson Julie Kozack told reporters during a ⁠press conference. Kozack also said energy prices remained a challenge for the global economy, ⁠with ​diesel, gasoline, and jet fuel prices up between 60% and 97% relative to pre-conflict levels, reflecting both the impacts ⁠of the Iran war and limited global refining capacity.

"We've seen that the ⁠energy shock, ⁠which is part of what's feeding headline inflation, is not over yet," Kozack said.