Global bond yields near 4%, highest since 2007, as US-led sell-off intensifies
A global sell-off in government bonds pushed the Bloomberg Global Aggregate Bond Index yield to 3.99%, the highest since 2007, led by US Treasuries after strong economic data and a weak five-year note auction. The US five-year yield breached 5% for the first time since 2007, and the sell-off spread to Asia, with Australia's three-year yield hitting a 12-year high and Japan's 10-year yield reaching its highest since 1996. Analysts warn yields may rise further due to persistent inflation, heavy government borrowing, and potential central bank tightening.
Reference imageEditorial responsibility
- No named human review is recorded for this page.
- Reports are grouped by semantic similarity and deterministic rules. Language models may assist titles, summaries, translation and cross-source analysis; the page reads the event directly, while its address stays stable when the title changes.
- Summary awaiting refresh
Summary awaiting refresh
Cross-source coverage
Reporting timeline
Global bond yields near 4%, highest since 2007, as rate hike bets surge
Global government bond yields are approaching 4%, a level not seen since 2007, driven by persistent inflation and high fiscal financing needs that are forcing markets to reprice interest rate expectations. The Bloomberg Global Aggregate Bond Index yield rose 8 basis points to 3.99% on Wednesday, with the US five-year yield breaking above 5% for the first time since 2007. Swap markets now fully price in three 25-basis-point rate hikes over the next year, with a fourth hike increasingly expected. The sell-off has spread to Asia, with Australia's three-year yield hitting a 12-year high and Japan's 10-year yield reaching its highest since 1996. Analysts from JPMorgan and KKR see further upside for yields, citing energy-driven inflation, massive government borrowing, and potential further central bank tightening. Some investors, like Ericsenz Capital's Damien Loh, find short-term bonds cheap but prefer curve steepening trades, while TD Securities' Hans Mikkelsen warns that rising volatility is deterring buyers. The global bond market has lost about 2.4% year-to-date, contrasting with a 6.8% gain in the same period last year.
Read sourceGlobal bond yields near 4%, highest since 2007, as rate hike bets surge
Global government bond yields are approaching 4%, a level not seen since 2007, driven by persistent inflation and high fiscal financing needs that are fueling expectations that interest rates will stay higher for longer. The Bloomberg Global Aggregate Bond Index yield rose 8 basis points to 3.99% on Wednesday, its biggest single-day gain since May. The US five-year yield breached 5% for the first time since 2007, and swap markets now price in three 25-basis-point rate hikes over the next year, with a fourth increasingly likely. The sell-off has spread to Asia, with Australia's three-year yield hitting a 12-year high and Japan's 10-year yield reaching its highest since 1996. Analysts from JPMorgan and KKR expect further upside for US yields, citing energy-driven inflation, massive government borrowing, and further central bank tightening. The rising volatility, measured by the ICE BofA MOVE index at its highest since March, is deterring buyers. Some investors, like Ericsenz Capital, favor curve steepening trades over immediate entry, while TD Securities notes the market's fear of catching a falling knife.
Read sourceGlobal Bond Yields Near 4% as US Treasury Sell-Off Sparks Worldwide Rout
A sharp sell-off in US government bonds has triggered a global rout, pushing the average yield on the Bloomberg Global Aggregate Bond Index to 3.99%, the highest since 2007. The move was driven by strong US economic data, a weak five-year Treasury auction, and surging oil prices, which led traders to price in three 25-basis-point rate hikes by the Federal Reserve over the next year. The US five-year yield breached 5% for the first time since 2007, and the 10-year yield saw its largest single-day jump since April 2025. The sell-off spread to Asia, with Australia's three-year yield hitting a 12-year high and Japan's 10-year yield rising to 3.055%, its highest since 1996. Analysts from ING, Morgan Stanley, and KKR warn that yields may rise further due to persistent inflation, heavy government borrowing, and potential central bank tightening. The volatility has also weighed on equities by raising borrowing costs and eroding future earnings.
Read sourceShow 3 older updatesHide older updates
Global Bond Selloff Intensifies as US Yields Surge, Japan 10-Year Hits 30-Year High
A global government bond selloff accelerated on Thursday, pushing the average yield on the Bloomberg Global Aggregate Bond Index to 3.99%, the highest since 2007. The selloff was led by US Treasuries after strong economic data and a weak 5-year auction drove yields to multi-year highs. The US 5-year yield breached 5% for the first time since 2007, and the 10-year yield posted its biggest jump since April 2025's 'Liberation Day' tariff shock. Traders are now pricing in three 25-basis-point rate hikes from the Federal Reserve over the next year, with heavy hedging for a fourth. The selloff spread to Asia, with Australia's 3-year yield rising to 5.07% and Japan's 10-year yield climbing to 3.055%, a 30-year high. Analysts from ING, Morgan Stanley, KKR, and TD Securities warned that yields could rise further due to persistent inflation, oil price spikes, heavy government borrowing, and potential central bank tightening. The bond rout is also pressuring equities by raising borrowing costs and eroding future earnings.
Read sourceGlobal Government Bond Yields Surge Toward 4% for First Time Since 2007
A global bond selloff intensified, pushing the Bloomberg Global Aggregate Total Return Index yield to 3.99%, the highest since 2007. The move was led by US Treasuries after strong economic data and a poorly received 5-year note auction, which was the second worst since 2018. Analysts at ING Groep NV warned the selloff may be far from over. Investors remain cautious due to persistent inflation, the ongoing Iran conflict, and rising fiscal concerns, reinforcing expectations that interest rates will stay higher for longer. The yield surge is raising borrowing costs for corporations and homeowners and pressuring stock markets. In Asia, Australian 3-year yields hit 5.07%, a 12-year high, while New Zealand and Japanese yields also rose. Strategists at JPMorgan and KKR see further upside for US yields amid energy-driven inflation and potential central bank tightening. Pendal Group's fund manager noted that bonds are reacting rationally to strong economic growth and stubborn inflation.
Read sourceGlobal Government Bond Yields Surge Toward 4% for First Time Since 2007
A global bond selloff has pushed the average yield on government bonds to 3.99%, the highest level since 2007, according to the Bloomberg Global Aggregate Treasury Index. The selloff is led by US Treasuries, driven by strong economic data and a weak 5-year note auction, which was the second worst since 2018. Analysts from ING Groep NV, Pendal Group, and TD Securities warn the selloff may continue due to persistent inflation, tight labor markets, fiscal concerns, and the risk of further central bank tightening. The rising yields are increasing borrowing costs for corporations and homeowners and pressuring stock markets. The pressure extended to Asia on Thursday, with Australian and New Zealand bond yields hitting multi-year highs. Strategists at JPMorgan and KKR expect US yields to climb further as energy-driven inflation and government borrowing persist.