The ongoing global bond sell-off has pushed the yield on the US 10-year Treasury to its highest level since early 2025, as investors remain cautious about inflation and a surplus in corporate bond supply during the quiet August trading season. Similar trends have been seen in sovereign bond markets from Europe to Japan, driven by uncertainty over inflation prospects and changes in the structure of bond buyers. Earlier in the day, Germany sold a 30-year government bond through banks, with the yi

Global bond sell-offs have continued, pushing the yield on US 10-year Treasury bonds to its highest level since early 2025. In the quiet August trading period, investors remain alert to inflation and an oversupply of corporate bonds. Sovereign bond markets from Europe to Japan are showing similar trends, driven by uncertainties over inflation outlooks and changes in the structure of bond buyers. Earlier that day, Germany sold 30-year government bonds through banks, with yields reaching their highest level in 15 years. Ian Lyngen, Head of US Rates Strategy at BMO Capital Markets, stated: "The Treasury sell-off itself has become a macro event." In addition, Lyngen believes that the Federal Reserve will not raise interest rates next month, but this does not mean that the market will price in zero probability ahead of the decision. Walsh’s removal of forward guidance has undoubtedly made the policy outlook even more complex.