WS #15224
UK 30-year bond yields have surged to a 28-year high of 6%, acting as a catalyst for a broader global debt rout. The stress is spreading to continental Europe, with France facing a severe market sell-off over missed deficit targets and Italy forced to cut defense spending to shrink its deficit. Jefferies warns that rising US bond yields and widening credit spreads pose significant risks to equities, particularly hitting smaller stocks, banks, and utilities which have been pummeled in the current environment.
Sovereign Debt & Bond Yields
UK 30-year bond yields have surged to a 28-year high of 6%, acting as a catalyst for a broader global debt rout. The stress is spreading to continental Europe, with France facing a severe market sell-off over missed deficit targets and Italy forced to cut defense spending to shrink its deficit. Jefferies warns that rising US bond yields and widening credit spreads pose significant risks to equities, particularly hitting smaller stocks, banks, and utilities which have been pummeled in the current environment.