Overview
- The bond selloff on Thursday pushed US 10‑year yields to about 5.3% and 30‑year yields near 5.6%, while UK 30‑year gilt yields reached roughly 6%, draining prices across sovereign debt markets.
- Traders and analysts say higher oil prices tied to Middle East tensions, persistent inflation readings, heavy government debt issuance and strong private capital demand for AI and data centers together drove the rise in yields.
- The Federal Reserve’s September rate increase and signals that further tightening may be appropriate have shifted market pricing for policy, even though recent mixed inflation data trimmed the odds of an immediate October hike.
- Rising yields are weighing on stock markets, boosting flows into safe assets such as gold above $4,200 an ounce, and sharply raising the cost of government borrowing with direct implications for the UK Chancellor’s upcoming Budget and household mortgage costs.
- Markets are now focused on incoming US jobs and September inflation reports, central‑bank communications and any change in Middle East oil flows because those moves could deepen the rout or help yields stabilise.