Government bond markets in the United States, Japan, Germany and France came under heavy pressure as higher oil prices, fiscal strain, resilient growth and uncertainty over monetary policy pushed yields higher and weighed on equities. The benchmark 10-year U.S. Treasury yield briefly reached 4.81% on September 2, 2026, its highest level since January 2025; the 30-year yield rose as high as 5.29%, its highest level since 2007 and near its August 19-year high, while the two-year yield reached about 4.4%-4.41%, its highest level since January 2025. Japan’s 10-year government bond yield reached 3.03% after touching 3% for the first time in 30 years, and 30-year yields in Germany and France reached their highest levels since 2011. Economist Steve Hanke said President Donald Trump’s tariffs, the Iran conflict and renewed inflation had revived the bond vigilantes. Investors also cited mounting federal borrowing, weaker foreign demand, expectations for higher-for-longer central-bank rates and corporate borrowing for artificial-intelligence infrastructure. Treasury Secretary Scott Bessent has doubled planned purchases of 10- to 30-year Treasuries to at least $4 billion per operation from September 9 through November 4, as dealers prepare for the November 4 refunding. Higher yields are raising borrowing and refinancing costs globally and pressuring rate-sensitive lenders such as SoFi Technologies, although SoFi’s second-quarter growth and UBS Asset Management’s increased stake provided support. Markets also priced stronger prospects for Federal Reserve, European Central Bank and Bank of Japan tightening, while South Korea’s Kospi fell 3.99% to 6,562.72 on September 2.