Archive · 2 Oct 2026
Global Bond Rout Deepens as US Yields Hit 24-Year High
Government bonds are loans that investors provide to countries.
When investors demand more interest, bond yields rise and bond prices fall.
The US 10-year yield reached 5.34%, its highest level since 2002.
Yields also rose in Europe and Japan, making it more expensive for governments, companies and families to borrow money.
Investors are worried that inflation may stay high, partly because oil prices remain above $100 a barrel.
Strong US jobs data also made investors think interest rates could stay high for longer.
Spending on artificial intelligence is helping the economy but may also increase inflation and the supply of bonds.
Higher government debt means countries must spend more money on interest payments.
Stocks recovered in the United States, but smaller companies, utilities and European banks were hurt by the bond-market pressure.
The US 10-year Treasury yield reached 5.34%, its highest level since 2002, before easing.
Bond yields also rose across France, Germany, Britain, Japan and Italy as borrowing costs increased.
France’s 10-year yield approached 5%, while French bonds posted their worst quarterly performance since 1987.
Britain’s 30-year yield exceeded 6%, and Japanese government bonds recorded a fifth consecutive quarter of double-digit gains.
Inflation, oil above $100 a barrel, strong US economic data, AI investment and government debt fueled expectations of higher rates.
- Who
- Investors, governments, central banks, companies and households across the United States, Europe and Japan were affected.
- What
- Global government bond yields rose sharply, led by the US 10-year Treasury yield reaching 5.34%.
- When
- The renewed sell-off occurred on Thursday, with major quarterly bond-market moves reported through the three months to September.
- Where
- The pressure affected bond markets in the United States, France, Germany, Britain, Japan, Italy and other major economies.
- Why
- Investors reassessed inflation, oil prices, strong US economic data, interest-rate expectations, AI investment and government debt risks.
- US 10-year Treasury yield
- Reached 5.34%, its highest level since 2002; it later eased to around 5.24%.
- US 30-year Treasury yield
- Touched its highest level in 24 years before easing to 5.613%.
- French 10-year yield
- Reported between 4.92% and 4.96%, depending on the point measured; the latter was a 10-basis-point rise on Thursday.
- French bond performance
- Worst quarterly performance since 1987; the cost of insuring French debt also reached its highest level since 2013.
- British 30-year yield
- Exceeded 6%, reaching its highest level since 1998.
- Japanese government bonds
- Yields reached their highest level since the mid-1990s and recorded a fifth consecutive quarter of double-digit gains.
- Equity-market effects
- The STOXX 600 fell 1.2%, while the S&P 500 ended 0.2% higher after recovering from an early decline.
