Treasury yields whipsaw as borrowing costs remain elevated

• US 10-year Treasury yields hit levels not seen since 2002, and UK 30-year gilt yields reached 6%, the highest since 1998, making the UK the first G7 country to pay such a rate since 2012.
• French fiscal uncertainty, including a projected 5.4% deficit this year, has caused the euro to tank against the dollar and widened the spread between French and German government bonds to a 14-year high.
• Fed officials express concern over persistent inflation and suggest higher rates, while the upcoming US Non-Farm Payrolls report is closely watched for labor market strength.

The discussion centers on a global bond market rout, with Treasury yields and European borrowing costs (UK, France) reaching multi-year highs due to inflation concerns, fiscal uncertainty, and geopolitical tensions. Analysts highlight governments' struggle with debt and the potential for further market pressure if fiscal consolidation is not effectively addressed.