Rising oil prices and inflation concerns push U.S. and global bond yields to levels unseen since 2007 and the 1990s.
U.S. Treasury yields have climbed to their highest levels in over a decade, with 30-year yields exceeding 5.159% and 10-year yields reaching a one-year peak. The surge reflects growing anxiety over persistent inflation, rising oil prices, and expectations of further interest rate hikes by central banks worldwide.
Global bond markets are under similar pressure, with Japan’s long-dated yields hitting record highs and European yields at 15- to 20-year highs. Britain’s borrowing costs have also spiked to levels last seen in the 1990s, compounded by political uncertainty. Markets now price in a more than 50% chance of a Federal Reserve rate hike by year-end, alongside anticipated moves in Europe and Japan next month.
The bond selloff has dampened sentiment in equity markets, particularly those driven by AI-related optimism. Escalating tensions in the Gulf are fueling concerns over sustained inflationary pressures, further weighing on investor confidence.