Global Bond Yields Rise Amid Persistent Inflation and Central Bank Hawkishness

Bond yields globally are increasing, driven by persistent inflation concerns and signals from central banks about potential rate hikes. In the Eurozone, August inflation reached 3.3%, a three-year high, leading to expectations of an upcoming European Central Bank rate increase. U.S. Treasury yields have also risen, with the 10-year Treasury reaching 4.80%, the highest since early 2025, following Federal Reserve Chair Kevin Warsh's indication of further rate hikes if inflation remains elevated. Government budget deficits and borrowing by large tech firms are also contributing to higher yields.