Explainer: What's Behind the Selloff in World Bond Markets?

22:26 - 1.09.2026


September 1, Fineko/abc.az. Sovereign borrowing costs from the United States to Germany and Japan are surging toward multi-decade highs as a global wave of bond selling continues to sweep across financial markets.

The global selloff is primarily driven by persistent inflation concerns—amplified by rising energy prices—which have dashed hopes for near-term interest rate cuts and fueled expectations that central banks will maintain tight monetary policies for longer. Furthermore, investors are increasingly demanding higher yields to compensate for expanding government budget deficits and unprecedented sovereign debt levels worldwide.