Global Bond Sell-Off Accelerates Amid Rising Oil Prices

A global bond sell-off is intensifying as oil prices continue to rise, fueled by anxiety over persistent inflation. The yield on the two-year US Treasury rose to 4.35% on Tuesday, up significantly from about 3.50% at the beginning of this year.

The yield on the 10-year Treasury also increased to 4.79%, its highest level since January 2025. This is part of a global trend, with other nations facing similar economic pressures.

Japan's 10-year bond yield reached 3% for the first time since 1996, while Germany's 10-year bond yield rose to 3%, a 15-year high.

The sell-off in government bonds is linked to rising interest rates, which are making borrowing more expensive and contributing to inflation. The US debt has surpassed $40 trillion, with defense costs and interest on the growing deficit making up an enormous share of federal spending.