Global bond yields surge as U.S. 10-year yield reaches 4.78%

  • Global bond markets sold off as Middle East fighting lifted oil prices and raised inflation concerns.
  • U.S. 10-year Treasury yields rose 2.2 basis points to 4.78%.
  • Shein shares opened below their reduced IPO price in Hong Kong.

Global bond markets came under heavy selling pressure as renewed Middle East fighting lifted oil prices above $90 a barrel and heightened inflation concerns. The 10-year U.S. Treasury yield, a benchmark across asset classes, rose 2.2 basis points to 4.78%, its highest level in nearly 20 months and since January 2025. Japan's 10-year yield approached 3%, a level not seen for a generation, while German and French long-term yields reached 15-year highs. Markets are pricing interest-rate increases in New Zealand on Wednesday and Europe next week, with U.S. and Japanese hikes this month carrying better-than-even odds. Equities weakened in Japan and Hong Kong, where Shein Global debuted just below its reduced IPO price. Rising oil, U.S.-Iran tensions, fighting involving Russia and Ukraine, and concerns about fiscal policy are adding to pressure on bonds and risk assets ahead of U.S. jobs data on Friday.

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