Global borrowing costs soaring

Kim Khan· Host0:01

[instrumental music] Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Tuesday, May fifth, and I'm your host, Kim Khan. Our top story so far, global borrowing costs continue to climb as elevated oil prices fuel expectations that central banks may need to tighten policy to contain renewed inflation pressures. In the UK, long-term government borrowing costs have hit their highest level in nearly three decades. The thirty-year gilt briefly top five point eight percent, the highest since nineteen ninety-eight, before easing back as traders priced in two to three quarter-point rate hikes from the Bank of England this year. Economist Jim Bianco highlighted the move. On September twenty-seventh, twenty twenty-two, the UK thirty-year yield hit four point nine nine percent. This was so intolerable that Prime Minister Liz Truss was forced to resign. Today, the UK's thirty-year yield is seventy-seven basis points higher. In the US, the thirty-year treasury yield recently moved back above five percent for the first time since July, underscoring persistent pressure in the world's largest bond market. Ten-year US inflation expectations have also climbed to the highest level since twenty twenty-three. You can see how thirty-year yields across major economies compare in our story on Seeking Alpha. Also on the economic front, US job openings declined to six point eight six six million in March from six point nine two two million in February, according to the latest Jolts report. That was above the six point six five six million consensus, suggesting labor demand is cooling but not collapsing as the Iran war clouds the outlook. The job openings rate edged down to four