Global Long-End Bond Yields Hit Multi-Decade Highs Amid Debt Issuance and Inflation Concerns

Global bond markets are experiencing significant volatility, with long-end yields reaching multi-decade highs. The U.S. 10-year Treasury yield is near 4.8%, UK 10-year gilts are around 5.23% (highest since the 2008 financial crisis), French 10-year government bonds are above 4% (highest since 2008), and Japanese 10-year bonds have crossed 3% (first time since 1996). This surge is attributed to large government debt issuance, persistent inflation, and increased capital expenditure for AI, with U.S. Treasury buyback efforts having limited sustained impact.