Global bond yields hit 2008 highs, raising stakes for big borrowers

The global bond market has seen a significant shift as the US 10-year Treasury yield rose above 5% for the first time in over 14 years, with the yield curve inverting for the first time since 2008. This has led to a selloff in global bonds, with the global bond market capitalization falling by $4.2 trillion in the past month. The sell-off has been driven by the US Federal Reserve's interest rate hikes, which have increased the cost of borrowing for companies and governments. The yield on 10-year Treasury bonds has risen to 5.04%, while the 2-year yield has risen to 4.73%, inverting the yield curve. This inversion has been seen as a warning sign for a potential recession, as it typically precedes a downturn in economic activity. The selloff has also led to a rise in borrowing costs for companies, making it more expensive for them to borrow money. The global bond market has lost about 6.5% of its value in the past month, with the iShares Core U.S. Aggregate Bond ETF (AGG) falling 6.3%. The sell-off has also led to a rise in corporate bond yields, with the yield on high-yield bonds rising 10 basis points to 8.35%. The sell-off has been driven by the US Federal Reserve's interest rate hikes, which have increased the cost of borrowing for companies and governments.