Global Bond Market Reels from Surge in US Treasury Yields

A sharp increase in US Treasury yields is spreading globally, triggering a domino effect on bonds across Japan and Europe. The yield on the 10-year Japanese government bond neared 3.03% before closing at 3.018%, its highest level since 1996.

The rise in bond yields was fueled by calls from Hajime Takata, a hawkish member of the Bank of Japan's Policy Board, for more nimble hikes of the central bank's policy rate.

Analysts say the sharp rise in government bond yields signals that the global economy is entering an era of high interest rates.