Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears

Government bond yields jumped across major markets Tuesday, with borrowing costs in Japan and the U.K. touching multi-decade highs, and U.S. Treasury yields surging, as renewed Middle East hostilities reignite inflation concerns.The key U.S. 10-year Treasury note yield moved to a 20-month high, rising 3 basis points to trade at 4.7880%.Japan's benchmark 10-year note yield jumped more than 6 basis points, moving to 3% for the first time since 1996. Japan's short-term 2-year government bond yield also touched a 31-year high of 1.81%.Elsewhere, yields on U.K. 10-year government bonds, known as Gilts, rose more than 9 basis points to 5.2341%, their highest level since June 2008 in the midst of the Global Financial Crisis. The U.K. 30-year Gilt yield, meanwhile, soared 9 basis points to 5.8856%, its highest level since March 1998.Stock Chart IconStock chart iconU.S. 10-Year Treasury.German government bonds — typically seen as a barometer for euro zone borrowing costs — also rose. The 10-year bund yield was up more than 3 basis points at 3.3546%, a new 52-week high, as the 2-year bund yield reached 2.9496%, its highest level since July 2024. France's 2-year government bond yield rose to ...