Global Bond Yields Surge as Inflation Fears Mount – German 10‑Year Bund Hits 2011 High

U.S. Treasury yields held steady after last week’s sharp rally, with the 10‑year note hovering just below 1 basis point higher at 4.601%. The 30‑year Treasury rose a touch to 5.133%, while the 2‑year slipped to 4.065%. The modest moves follow a week of heightened inflation concerns that saw oil prices climb and new U.S. data hint at rising consumer price pressures.

The rally is not confined to Washington. On Monday, Germany’s 10‑year bund touched its highest level since May 6, 2011, and Japan’s 10‑year JGB surged to a 1997 peak, with the 30‑year JGB reaching a record high since 1999. Across the pond, the U.K. 10‑year Gilt climbed to a 2008 level and the 30‑year Gilt hit a 1998 high, reflecting uncertainty over the country’s political leadership.

Oil prices added fuel to the rally: Brent crude closed 2.6% higher at $112.10 a barrel, while U.S. West Texas Intermediate finished up 3.07% at $108.66.

Treasury Secretary Scott Bessent joined G7 officials and central bankers in Paris to address the new inflation and debt worries. ECB President Christine Lagarde reminded investors that market volatility is part of her job.

Will Hobbs, chief investment officer at Brooks Macdonald, warned that the Middle East conflict and the G7 summit’s economic fallout are forcing central banks to walk a tightrope on rates. "Inflation will remain a tricky, annoying problem for both policymakers and bond investors," he told CNBC’s "Europe Early Edition."