Commodities
Global Bond Sell-Off Gains Momentum Amid Persistent Inflation Concerns
A global bond sell-off is gaining momentum as concerns about inflation persist. The yield on the two-year U.S. Treasury, which closely tracks expectations of Federal Reserve moves, rose to 4.35% on Tuesday, a significant increase from 3.50% at the beginning of 2026.
The yield on the 10-year Treasury also rose to 4.79%, its highest level since January 2025. Japan's 10-year bond yield touched 3%, a level it hasn't hit since 1996, while Germany's 10-year bond yield rose to 3%, a 15-year high.
The sell-off is attributed to anxiety about persistent inflation, which remains above the Federal Reserve's 2% target. Higher energy prices have fueled inflation, with oil prices remaining high due to curtailed traffic in the Strait of Hormuz.