Global Bond Selloff Deepens as Oil Prices and Debt Fears Rattle Markets

The 10-year US Treasury yield has surged to its highest level in three years, edging toward the closely watched 5% mark that could rattle stock markets already on edge. Rising energy costs tied to the Middle East conflict, combined with growing worries over government debt, are driving the selloff.

Japan, Germany and UK Yields Climb Too

Japan’s 10-year yield topped 3% for the first time in three decades. Germany’s bund yield sits at its highest since 2011, while UK gilts reached levels unseen since 2008.

Bond Vigilantes Return

Analysts point to “bond vigilantes” demanding higher returns over deficit concerns, plus heavy bond issuance from tech firms funding AI expansion, competing with governments for investor cash. Treasury Secretary Scott Bessent’s earlier buyback effort offered only brief relief. Meanwhile, Fed Chair Kevin Warsh’s hawkish remarks boosted rate hike bets, and traders expect an ECB hike next week.