October 2, 2026
Article from Reuters by Dhara Ranasinghe and Harry Robertson
Article Synopsis
Global bond markets are facing renewed selling as rising oil prices, persistent inflation concerns, and expectations for higher interest rates push government borrowing costs higher. The U.S. 10-year Treasury yield reached 5.34%, its highest level since 2002, while yields in France, Britain, and Japan also reached multi-decade highs. Rising government debt and increased borrowing to fund artificial-intelligence investments are adding to pressure on bond markets, potentially raising borrowing costs for governments, businesses, and households. Reuters reports that lasting relief may depend on governments reducing debt burdens or achieving stronger economic growth.
