10:25 - 1.09.2026

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September 1, Fineko/abc.az. Global bond yields have surged to their highest levels in nearly two decades as rising oil prices reignited inflation concerns and reinforced investor expectations of further Federal Reserve rate hikes. Bloomberg’s global sovereign bond index yield rose for a fourth consecutive session to 3.72%, reaching its highest point since mid-2008.

The primary catalyst for the recent sell-off was a hawkish speech by Fed Chair Kevin Warsh at the Jackson Hole symposium, where he reiterated the central bank's firm commitment to bringing down persistent inflation that has exceeded targets for five years. Furthermore, growing market concern over high public spending in major economies like Japan, the UK, and the U.S. has prompted investors to demand higher yields for holding long-term debt. Consequently, Japan’s 10-year government bond yield hit 3% for the first time since 1996, while Australia’s 10-year yield reached levels not seen since 2011.

Market analysts note that while the bond market is not collapsing, the sharp rise in yields sends a unambiguous message that stickier inflation will force global central banks to keep policy rates higher for an extended period.