Bond Rout Extends into Q4 Amid Fuel-Supply Stress and Rising Yields

The global bond market continued its downward trend into Q4, with long-term yields reaching their highest level since 2002. The US 10-year Treasury yield rose to around 5.34%, while Britain's 30-year yield touched 6% for the first time since 1998.

The Dollar pushed higher, extending its sixth consecutive quarterly gain, as EUR/USD broke below 1.13. This trend is expected to persist due to ongoing fuel-supply stress and renewed pressure on crude and refined-product prices.

The market has shown little response to softer August PCE inflation data, which reduced conviction in another Fed hike in October. Instead, the long end refused to rally, with the 10-year yield pushing through 5.3%.