Global bond markets are under heavy selling pressure as yields rise to levels last seen in 2008. Investors are worried about persistent inflation, rising oil prices, and widening fiscal deficits. Central banks remain firm on tightening policies, adding stress to debt markets worldwide.
Japan’s 10‑year bond yield touched 3%, the first time since 1996. The United Kingdom’s 30‑year yield rose to levels last seen in 1998. United States 30‑year bonds reached 5.34%, close to a 22‑year high. Bloomberg’s global sovereign bond index climbed to 3.72%, the highest since mid‑2008.
The selloff is driven by strong signals from the Federal Reserve to keep fighting inflation. Oil prices crossed $92 a barrel after tensions between the United States and Iran, raising fears of further inflation. Fiscal deficits in major economies are forcing investors to demand higher returns. Heavy corporate debt issuance has also reduced demand for government bonds.
Equity markets are under pressure, with the MSCI global index slipping 1%. Analysts warn that yields may rise further as risks converge. September and October are historically weak months for bonds, adding to investor caution. Experts believe long‑term yields may be near their peak, but uncertainty remains high.
Global markets now face a period of volatility as borrowing costs rise and growth prospects weaken.
