Global bond yields surge to decade-plus peaks, weighing on risk sentiment despite modest equity gains in early European trading.
European equities opened with minor losses while S&P 500 futures edged up 0.2%, reflecting a tepid but steadier risk mood. However, bond markets remain under pressure, with 10-year yields in France nearing 4% and rising 26 bps this month—the highest since 2009. U.S. 10-year yields climbed to 4.65%, a level not seen since early 2025, while Japan’s 10-year yields hovered near 2.80%, a 30-year high.
The bond rout underscores broader market vulnerabilities, offsetting early-session calm. Oil prices dipped 1% to $103.10, and major currencies showed little movement, with EUR/USD flat near 1.1600 and USD/JPY steady around 159.00. Traders remain cautious amid higher yields supporting the USD and lingering geopolitical uncertainties.
Market focus remains on bond yields, which could further dampen risk appetite if the selloff persists. Large option expiries and intervention risks in USD/JPY add to near-term volatility.