Analysis: Inflation concerns trigger a global bond sell-off, with long-term U.S. Treasury yields hitting a nearly three-year high

Deep Tide TechFlow News, May 18 — Due to investor concerns over accelerating inflation triggering a sell-off in the global bond markets, the yield on U.S. long-term government bonds rose to its highest level in nearly three years. After U.S. President Trump pressured Iran to reach an agreement to end the Iran war, causing oil prices to continue rising, the 30-year U.S. Treasury yield temporarily increased by 4 basis points to 5.16%, reaching the highest level since October 2023. The yields on the 10-year and 2-year government bonds respectively hit 4.63% and 4.10%, the highest since February 2025.

On the Japanese side, the 30-year Japanese government bond yield surged 20 basis points to 4.2%, the highest since issuance in 1999. Bond traders often see the 30-year U.S. Treasury yield at 5% as a “dividing line,” believing this level will attract bottom-fishing buyers. Guneet Dhingra, head of U.S. interest rate strategy at Natixis, said, “Above 5% has no anchoring point.” He advised clients to focus on the trading range of 30-year U.S. Treasuries between 5.25% and 5.5%. (Jin10)