A global bond sell-off pushed 10-year Treasury yields close to the significant 5% mark, approaching their highest level in almost two decades as the Iran War and US trade policies combined to stoke inflationary fears. The increase in Treasury yields triggered a sell-off of Asian and Australian bonds, appearing to confirm that US Treasury Secretary Scott Bessent’s attempt to steady the government debt market had backfired.
Bessent’s moves have stirred fears that Washington is acting “in a way more commonly associated with weaker borrowers,” the Financial Times argued. Traders are betting inflation rates will remain higher for longer, roiling global politics. “These are worrying times for bond markets,” an ING economist told Bloomberg.