Global Bond Market Plunges to 2008 Levels Amid Inflation Fears

The global bond market is experiencing its most intense selling spree in nearly two decades. The yield on the Bloomberg Global Government Bond Index has risen for four consecutive trading days, reaching 3.72%, the highest level since mid-2008.

This is not a localized fluctuation in a single market but a systemic repricing sweeping across the United States, Japan, Australia, and the entire G10.

The U.S. 10-year Treasury yield rose to as high as 4.78%, the highest since January 2025; Japan's 10-year yield touched 3% for the first time in 30 years, while Australia's 10-year yield reached its highest level since 2011.

The logic driving this sell-off is interconnected: Federal Reserve Chair Kevin Warsh reaffirmed his anti-inflation stance at the Jackson Hole symposium, the escalation of tensions between the U.S. and Iran pushed Brent crude oil back above $90 per barrel.