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Global bond sell-off pushes yields to multi‑decade highs

financeSep 1, 2026391,359

A global sell-off in government bonds pushed yields to multi‑decade highs this week, with Japan's 10‑year yield rising above 3 percent for the first time since 1996, U.K. gilt yields near 2007 levels, German yields around 2011 highs, and the U.S. 30‑year approaching a two‑decade peak. Rising Brent crude, which passed $92 a barrel, and renewed geopolitical risks tied to the Iran war have reinforced investor concerns about sticky inflation and larger deficits after years of fiscal stimulus and increased military spending, the Wall Street Journal warned. The moves raised borrowing costs for governments and translated quickly into pressure on markets and consumers; the Dow fell 451 points while the S&P 500 and Nasdaq also pulled back on Tuesday, and analysts said higher yields will push up mortgage and small business loan rates. Some market participants blamed recent intervention by Treasury official Bessent, arguing a buyback intended to calm markets may have increased nervousness among bond investors, a critique noted in reporting. Short‑term fallout includes renewed scrutiny ahead of central bank policy meetings, where officials must weigh higher yields and inflationary signals when setting rates. Reuters and AP coverage noted the sell‑off is raising debt‑service costs and complicating fiscal positions in major economies, a dynamic likely to affect upcoming debt auctions and budget planning.

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