Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears
Japan’s 10-year yield topped 3% for the first time since 1996 as oil-driven inflation fears and heavy sovereign issuance lifted borrowing costs worldwide.
- On Tuesday, Japan's benchmark 10-year bond yield struck the key 3% barrier for the first time since 1996, while the two-year yield notched a 31-year peak at 1.795%.
- Deepening global debt selloffs driven by oil-fueled inflation and monetary tightening have pushed yields higher from Tokyo and Sydney to New York and London as investors anticipate central bank rate hikes.
- "Investors are increasingly demanding greater compensation to own duration," said Masahiko Loo, senior fixed income strategist at State Street Investment Management in Tokyo, as sovereign issuance and corporate funding compete for capital.
- Traders expect the Bank to raise rates this month, while Treasury Secretary Scott Bessent has urged the central bank to tighten policy as Japan's ministries prepare record budget requests.
- Prime Minister Sanae Takaichi faces rising costs to service the nation's massive debt pile, while analysts warn higher yields could make carry trades less attractive and drive re-allocation into Japanese assets.
78 Articles
78 Articles
Bond investors continue sell off, Israel looks to LatAm for new friends, Brazilian presidential candidates push for data centers
Global bond-fire rages as investors fret about inflationInvestors around the world are selling off government bonds amid concerns about rising inflation and unsustainable spending by some large economies. The yield on 10-year bonds issued by Japan, for example, has reached its highest level in 30 years as Prime Minister Sanae Takaichi pushes a new debt-fueled spending amid rising inflation. UK bonds have also soared amid inflation concerns. Refr…
U.S. Treasury yields rose across the board as international oil prices surged due to political instability in the Middle East. According to CNBC on the 1st (local time), the yield on the 10-year U.S. Treasury bond, which serves as the benchmark for global market rates, recorded 4.788% this morning, up 3 basis points (1 bp = 0.01 percentage point) from the previous day. This is the highest level since January 14 of last year. The yield on the 2-y…
The interest on the ten-year bond in the US rises to 4,788%, its peak since January 2025, driven by tension in the Middle East and the rise in crude oil.The military actions in Iran and the increase in oil to more than 88 dollars raise inflation and pressure the debt, analysts say.
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