Global stocks fall on US bond rise
Published June 13th, 2007
Global stock markets have fallen after US government bond yields rose to their highest level in five years, stoking fears of higher borrowing costs.
With higher bond yields seen as a signal of higher interest rates to come, investors are concerned about the knock-on impact on corporate profits.
After the Dow Jones fell 130 points overnight, London’s FTSE 100 was down 30 points in early Wednesday trading.
Japan’s Nikkei fell 28 points, while Germany’s Dax started down 72 points.
The yield on the benchmark US Treasury 10-year bond rose to 5.27% in New York last night, its highest level in five years.
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