Global bonds sell off as US Treasury yields hit 15-year high

U.S. Treasury yields climbed to their highest levels in 15 years on Monday as global bond markets sold off amid mounting inflation concerns, with the 10-year yield reaching 4.6173 percent and the 30-year yield hitting a two-decade high of 5.1418 percent. The spike came as new Federal Reserve Chair Kevin Warsh faces rising consumer prices and increased import costs, while oil prices surged following fresh tensions in the Middle East, with Brent crude climbing 1.8 percent to $111.16 per barrel after an attack on a nuclear power plant in the United Arab Emirates. The rally in Treasury yields rippled across global markets, with German 10-year bund yields rising to 3.1827 percent and Japan's 10-year JGB yield jumping 13 basis points to 2.739 percent. In the United Kingdom, gilts remained volatile amid political uncertainty, with the 10-year yield hitting 5.19 percent before paring back to around 5.15 percent as traders weighed the potential for a leadership challenge to Prime Minister Keir Starmer from Manchester Mayor Andy Burnham. The instability comes as G7 finance ministers and central bankers convened in Paris on Monday to discuss the economic fallout from the Middle East conflict, with economists warning that shifts toward increased public spending could further pressure British bond prices.