Global Bond Selloff Pushes Yields to Multi-Decade Highs

Global bond markets are experiencing a sharp selloff, sending government borrowing costs to multi-decade highs and injecting volatility into equity markets worldwide. The downturn, which intensified on Tuesday, September 1, 2026, is driven by a confluence of factors including persistent inflation, escalating geopolitical tensions, and unprecedented corporate borrowing for artificial intelligence infrastructure. The sell-off has pushed key yields to levels not seen since the 2008 financial crisis. In the United Kingdom, the yield on 10-year gilts surged to 5.2 percent. In the United States, the 10-year Treasury note yield climbed to 4.8 percent, while the 30-year bond yield approached a 20-year high at 5.2 percent. The rise in yields, which move inversely to bond prices, reflects investors demanding higher returns to hold government debt amid growing economic uncertainty. A primary catalyst is the ongoing conflict involving the United States and Iran, which has disrupted shipping through the Strait of Hormuz. This has pushed energy prices higher, with Brent crude oil reaching $94 per barrel and West Texas Intermediate at $90.