This looks bad, Global bond sell-off worsens as U.S. 2-year yield touches highest level since 2025

A relentless global bond market sell-off accelerated on Tuesday, driving sovereign borrowing costs across North America, Europe, and Asia to generational highs as escalating military conflict in the Middle East and persistent central bank hawkishness combined to trigger a historic retreat from fixed-income assets.

In the United States, benchmark Treasury yields surged across the curve as fixed-income desks aggressively re-priced federal interest rate expectations and inflation risks:

Two-Year Treasury Yield: Hovered at 4.354%, touching its highest level since 2025 as policy-sensitive paper bore the brunt of hawkish Fed rate pricing.

10-Year Treasury Yield: Advanced to 4.780%, also reaching its highest point since 2025 as duration paper faced heavy selling pressure.

30-Year Treasury Yield: Climbed to 5.273%, pushing to an over one-week high as long-end term premia expanded.

The sharp U.S. yield spike mirrored widespread carnage across international debt hubs. In Europe, Germany’s policy-sensitive two-year Schatz yield rose for a fifth consecutive session to 2.936% – its highest level since July 2024 – while the 10-year Bund yield jumped to 3.352% and the 30-year yield touched 3.841%, both marking their highest levels since 2011. France’s 10-year OAT yield escalated to 4.15%, its highest since November 2008.