Selloff in U.S., European Government Bonds Deepens

Live updates

1. 2h ago

   US and European Government Bond Selloff Deepens

   The selloff in United States Treasurys and European government bonds deepened Monday, pushing 10-year Treasury and German Bund yields to multiyear highs. The decline in bond prices extended as a diplomatic stalemate and a rejected truce in the Middle East drove oil prices higher, stoking inflation fears. Investors also digested broader global risks and a higher-for-longer path for the Federal Reserve. Meanwhile, US long-dated Treasury yields rose to their highest in more than 20 years, and UK 30-year bond yields briefly climbed above 6 percent for the first time since 1998 amid concerns over the sustainability of the US deficit.

   Why it matters

   Rising government bond yields signal tighter financial conditions and higher borrowing costs across global economies. The persistent selloff reflects investor anxiety regarding inflation pressures tied to commodity shocks and central bank policy paths. UK long-term borrowing costs also surged to levels unseen since 1998, compounding international market pressures.

   What is confirmed

   • The selloff in U.S. Treasurys and European government bonds pushed 10-year Treasury and German Bund yields to multiyear highs.
   • A rejected Iran truce and diplomatic stalemate pushed oil prices higher and drove the bond selloff.
   • US long-dated Treasury yields rose to their highest in more than 20 years.
   • UK 30-year bond yields briefly moved above 6 percent for the first time since 1998.

   Still unconfirmed

   • Fears that the US deficit is unsustainable drove UK 30-year bond yields briefly above 6%.

   What to watch next

   • Developments in Middle East diplomatic talks and potential impacts on oil prices
   • Federal Reserve policy signals regarding the path for interest rates
   • Further movements in US and European 10-year and 30-year government bond yields
   Sources used for this update (12)

   1. www.cnn.com — Stock Market Data - US Markets, World Markets, and Stock Quotes
   2. WSJ — Treasury Yields Rise Amid U.S.-Iran Diplomatic Stalemate
   3. WSJ — Stock Market Today: Rejected Iran Truce Pushes Oil, Yields Higher; Dow Futures Slip — Live Updates
   4. Bloomberg.com — Treasuries Sink as US-Iran Talks Fail to Assuage Inflation Fears
   5. Yahoo Finance — Bond yields push higher as investors digest global risks, higher-for-longer path for the Fed
   6. Axios — Why the surge in bond yields could be a positive
   7. www.marketscreener.com — Selloff in U.S., European Government Bonds Deepens -- 4th Update
   8. finance.yahoo.com — Global bond selloff rolls on, US 30-year yield at highest ...
   9. finance.yahoo.com — Selloff in U.S., European Government Bonds Deepens
   10. freemannews.tulane.edu — The Wall Street Journal: Selloff in U.S., European Government ...
   11. economictimes.indiatimes.com — Global Market: Eurozone bond selloff pauses, yields stay near multi-year highs
   12. www.theguardian.com — US borrowing costs hit 24-year high as global bond sell-off ...
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