The international financial market ushered in a gloomy start to September. As the US market resumed trading after a long weekend, the prevailing bearish sentiment intensified the wave of sell-offs in long-term bonds across developed countries. The yield on the US 30-year Treasury bond approached the psychological threshold of 5%, the yield on Japan's 30-year government bond hit a multi-decade high, the yield on the UK's 30-year gilt climbed to its highest level since 1998, and the yield on France's 30-year government bond surpassed 4.5% for the first time since 2009.
Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, pointed out that the driving factors behind this wave of long-term bond sell-offs include market concerns over the ballooning scale of sovereign debt and the political obstacles faced by countries in implementing fiscal tightening policies. The continued rise in long-term bond yields in developed countries reflects deep-seated doubts in the market regarding debt sustainability and the effectiveness of policy measures.