Global Bond Selloff Hits 20-Year Highs, Driving U.S. Mortgage Rates to 7.4%
Global bond yields have surged to multi-decade highs, with the U.S. 10-year Treasury reaching 5.36% and France’s 10-year yield hitting its highest level since 2002. This historic sell-off, driven by oil shocks, fiscal deficits, and AI-related capital demand, has pushed 30-year U.S. mortgage rates to 7.4%, significantly reducing homebuyer affordability. While some advisors view the high yields as a generational opportunity for income, others warn of a deepening housing recession and potential sovereign debt crises in Europe.