Long-term bond yields surge around the world

Changing times: US dollar and euro banknotes in an illustration. A pullback by central banks and pension funds from bond markets has marginalised a once-dependable source of funding. — Reuters

WASHINGTON: Around the world, yields on longer-dated sovereign debt have soared as investors question the ability of governments to cover massive budget deficits.

In the United States, 30-year bond yields last week approached levels last seen in 2007 as President Donald Trump’s tax bill is poised to swell the budget deficit.