Shafaqna English– On Tuesday(1 Sep 2026), a broad selloff in global bond markets pushed yields to multi-year highs as escalating Middle East tensions drove oil prices above $90 per barrel, exerting downward pressure on stock markets worldwide.
The 10-year U.S. Treasury yield rose 2.2 basis points to 4.78%, its highest in nearly 20 months, while Japan’s 10-year yield approached 3%—a level unseen in a generation. Investor sentiment remained fragile ahead of Friday’s U.S. jobs data, which could trigger an interest rate hiking cycle as soon as this month.
Rising oil prices and U.S.-Iran tensions have revived inflation worries, compounding the hawkish signals from Federal Reserve Chair Kevin Warsh, who recently indicated that policymakers would act if price pressures persist.
Global term premiums and long-end yields continue to face upward pressure from converging risks: tightening monetary policy, geopolitical flare-ups, inflation uncertainty, and fiscal concerns.
Asian markets reflected the cautious mood, with Japan’s Nikkei and Hong Kong’s Hang Seng edging lower, while European bond yields hit 15-year highs.
Brent crude traded above $91 a barrel, and European gas prices closed at multi-year peaks. Markets are pricing in rate hikes in New Zealand, Europe, the U.S., and Japan within the coming weeks.
The geopolitical backdrop remains tense, with Trump threatening further strikes on Iran and Russia-Ukraine fighting pushing wheat prices to near three-year highs.
The global nature of rising borrowing costs has limited dollar support, with the euro steady at $1.1619 and the yen at 159.76. In Hong Kong, Shein shares slipped below their already marked-down IPO price, as tariff and duty changes in the U.S. and Europe have undermined the fast-fashion retailer’s low-cost business model.
Source: Reuters