{Economic Information Agency 24th exclusive} Global bond sell-off intensifies, with the average yield on government bonds nearing 4%, a level not seen since 2007. Selling pressure has also spread to Asia, with government bond yields rising in Japan, Australia, and New Zealand.

　　Bloomberg's Global Aggregate Government Bond Yield Index rose 8 basis points to 3.99% on Wednesday (23rd). U.S. Treasuries were the main driver of the bond selloff, with strong economic data and the second-weakest 5-year U.S. Treasury auction since records began in 2018, pushing much of the yield curve to multi-year highs.

　　Asian bond markets were also dragged lower on Thursday. The policy-sensitive 3-year Australian government bond yield surged 13 basis points to 5.07%, the highest level since May 2011. New Zealand's 2-year yield rose as much as 17 basis points, approaching 4%. Japan's 10-year yield also rose upon resuming trading after a three-day holiday.

　　Strategists at JPMorgan and KKR believe that with energy-driven inflation, massive government borrowing, and the risk of further monetary tightening by central banks continuing to unfold, U.S. yields have further room to climb.

　　"This move could be far from over," said Padhraic Garvey, head of research for ING Groep NV in the Americas, in a report. (rc)