Global Bond Yields Hit Multi-Decade Highs as Oil Tops $92 on Middle East Strikes
Updated
Updated · CNBC · Sep 1
Global Bond Yields Hit Multi-Decade Highs as Oil Tops $92 on Middle East Strikes
3 articles · Updated · CNBC · Sep 1
Summary
Japan’s 10-year yield hit 3% for the first time since 1996, while U.K. 30-year gilts climbed to 5.8856%, their highest since 1998, as a global bond selloff intensified Tuesday.
Brent crude rose 2.2% to $92.38 and WTI gained 2.61% to $88.05 after U.S. and Iran retaliatory strikes around the Strait of Hormuz revived inflation fears.
The U.S. 10-year Treasury yield reached 4.7880%—a 20-month high—while Germany’s 10-year bund touched a 52-week high and France’s 2-year yield hit its highest since April 2024.
Scott Bessent dismissed concern over higher U.S. yields, calling Treasuries the world’s best-performing market, but Standard Chartered’s Steve Englander said war, tariff-revenue loss and broad deficit pressures should keep yields rising.
In Britain, the gilt surge also reflected catch-up after Monday’s holiday and investor scrutiny of Prime Minister Andy Burnham’s reported plans for greater state control and easier public ownership of struggling utilities.
How will the unprecedented shift of Treasury holdings to private offshore investors impact the safety of US bonds during this Middle East escalation?
As dark shipping routes dominate the Strait of Hormuz, will hidden transit fees secretly drive up global borrowing costs and crash vulnerable bank stocks?
With 10% of massive tankers trapped, could soaring war-risk insurance trigger a global inflation crisis that pushes mortgage rates even higher?