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Global government bond yields hit multi-decade highs amid US-Iran tensions and inflation fears

Market News
01 Sep 2026
CNBC
View Source
Bearish
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Government bond yields surged across major markets including the U.S., Japan, U.K., and Germany due to renewed tensions between the U.S. and Iran, which raised inflation concerns. Japan's 10-year bond yield reached 3% for the first time since 1996, while U.K. yields hit levels not seen since the 2008 financial crisis. Rising energy prices from Middle East hostilities are driving inflation worries, pushing borrowing costs higher globally. Experts warn that bond yields will likely stay elevated as deficits and geopolitical risks persist.

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