Global government borrowing costs are continuing to rise, and investors are demanding higher yields on longer-dated bonds. According to Sina Finance, the increase in U.S. Treasury yields even prompted Treasury Secretary Bessent to announce a larger buyback program for long-term Treasuries, but the move failed to stop the 10-year U.S. Treasury yield from breaking above 5%, its highest level in nearly 20 years.

Investors have been pulling out of long-term sovereign debt for several reasons, including concerns over widening fiscal deficits, as well as inflation staying elevated because of trade wars and conflict in the Middle East. At the same time, heavy debt issuance by technology companies to build artificial intelligence infrastructure has also diverted funds away from Treasuries.

Although the Federal Reserve's September rate hike eased concerns about the central bank's commitment to fighting inflation, the structural forces behind the bond selloff have not disappeared. Yields remain elevated, and average bond yields among Group of Seven members are now at their highest since 2000.