Surge in Borrowing Costs on Both Sides of the Atlantic:
– US 10-year Treasury yields near highest level since 2007.
– Equivalent gilt yields at highest since 2008; French government bonds at levels unseen since 2012.
Factors Driving Bond Yield Increase:
– Global bond sell-off driving benchmark US 10-year Treasury yields and other bond yields higher.
– Strong economic data suggests US economy’s strength and inflation may take longer to moderate.
– Increased government bond supply contributing to yield surge.
– Demand from foreign investors, like Japan and China, may be waning.
UK economy vs Germany economy
– UK’s GDP per capita in 2007: Just over $44,000
– Germany’s GDP per capita in 2007: Just over $47,000
– UK’s GDP per capita in 2022: Under $47,000 (barely moved since 2007)
– Germany’s GDP per capita growth from 2007 to 2022: 14%
– France, Germany, and the US are around one-sixth more productive than the UK
