Global government bond yields rise to highest level since 2008

Global government bond yields rose to their highest levels in nearly two decades after higher oil prices renewed inflation concerns in the markets, alongside growing investor expectations that the US Federal Reserve will raise interest rates.

The Bloomberg Global Treasury Index yield rose for a fourth consecutive session to 3.72%, its highest level since mid-2008.

Bond prices in Japan and Australia fell in Tuesday’s trading, with the yield on Japan’s 10-year government bonds surpassing 3% for the first time since 1996, while Australian 10-year bond yields jumped to their highest levels since 2011.

Pricing pressures on developed-market debt are mounting amid concerns over high government spending in the US, UK, Japan and France, prompting investors to demand higher yields to hold long-term debt. The Bloomberg Global Aggregate Index has fallen 0.9% since the start of the year, after gaining 6.8% in 2025.