Bonds Buckle as Global Markets Weather Volatility
The third quarter of 2026 was marked by significant events in global markets. The yield on US Treasury bonds hit a 24-year high, while diesel prices reached an all-time peak and crude oil prices rose above $100 per barrel.
In the bond market, the benchmark 10-year US Treasury yield climbed to 5.34% after increasing by over 80 basis points in the third quarter. European markets also saw a significant increase in yields, particularly in France, where they reached a 24-year high and approached the psychologically important 5% level.
The widening spread between French and German sovereign bond yields to over 140 basis points jarred European stocks and hit the euro. In Japan, the 10-year government bond yield rose nearing a 30-year high after inflation in Tokyo increased at its fastest pace in 10 months.