A global bond sell-off intensified across Asian markets on Thursday, driving Japanese benchmark yields to levels unseen in over a decade. The surge follows heavy selling of German bonds, which has rapidly spread throughout fixed-income markets. Japan’s 10-year yield reached 1.5 percent, a mark not seen since June 2009, as the nation grapples with increasing inflation and escalating borrowing costs. Concurrently, U.S. Treasuries experienced a decline, pushing the 10-year yield higher for a third consecutive day, hovering around 4.3 percent.
Australian and New Zealand bonds also witnessed significant yield increases of approximately 10 basis points. These movements reflect the profound impact of recent geopolitical volatility, including fluctuating U.S. support for Ukraine and tariff-related news, on global financial markets. Traders are actively assessing the potential effects of these factors on economic growth and inflation. Furthermore, Germany’s ambitious spending plan, aimed at bolstering its defense capabilities, is also contributing to the pressure on fixed-income markets, signaling a commitment to substantial fiscal measures amid geopolitical tensions.
