Global Bond Yields Surge as Japan and Germany See Decade-High Rates

Rising bond yields in Japan, Germany, and other markets signal tighter monetary policies and potential economic risks.

Japan's 10-year government bond yield reached 1.5%, its highest level since 2009, following expectations of further rate hikes by the Bank of Japan.
Germany's 10-year Bund yield jumped 28 basis points to 2.76%, marking its highest level since October 2023 and the largest sell-off in German bonds in decades.
The global bond market sell-off extended to Australia, New Zealand, and the U.S., with U.S. Treasury yields seeing modest increases to 4.31%.
Economist Peter Schiff warned that rising global bond yields could deepen the U.S. recession, as higher yields create competition for U.S. Treasuries.
Japan's inflation remains above the Bank of Japan's 2% target, fueling expectations of tighter monetary policy and further bond yield increases.