Bond Yields Hit New Highs as Inflation Fears and Rate Hikes Bite

Global bond yields surged to new highs on Tuesday, as concerns over inflation and interest rates continued to weigh on investors. The 10-year U.S. Treasury yield broke resistance at 4.75% to reach 4.78%, its highest level since early 2025.

In Japan, the 10-year benchmark bond yield hit 3% for the first time in a generation, while Australia's 10-year yield saw its sharpest rise in five months.

Ryutaro Kimura, senior strategist at BNP Asset Management, noted that 'there is now something of a sense of resignation, tinged with helplessness, about rising interest rates.'

The jump in oil prices and renewed tensions between the U.S. and Iran stoked worries over inflation, which is negative for bonds.