Global Bond Sell-Off Intensifies as Rising Oil Prices Fuel Inflation Fears

Global bond yields surged to new highs on September 1, 2026, as renewed conflict in the Middle East pushed oil prices above $90 a barrel, intensifying inflation concerns. The 10-year U.S. Treasury yield reached a near 20-month peak of 4.78%, while Japan's 10-year benchmark approached 3%, a level not seen in a generation. Germany's 10-year bond yield also rose to a 15-year high of 3%. This widespread bond sell-off is exerting pressure on global stock markets.