The bond rout reflects a fundamental repricing of global interest-rate expectations, as crude’s advance stokes inflation fears already heightened by back-to-back US inflation reports this week. Along with wagers on Federal Reserve rate hikes, policy tightening bets are also gaining traction in Japan, where producer prices jumped by the most since 2014.
(May 15): The global bond selloff intensified as Brent crude’s climb past US$107 a barrel compounded a week of mounting pressure from signs of rising inflation around the world.
The yield on two-year Treasuries climbed to 4.06%, a level not seen since March 2025, while 10-year yields rose to near 4.54%, the highest in about a year. Japan’s 30-year yield increased to 4% for the first time since its debut in 1999, and the 20-year rate climbed to its highest since 1996.
