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

Golden Finance reports that on May 18th, due to investors’ concerns about 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 yield on the 30-year U.S. Treasury bond temporarily increased by 4 basis points to 5.16%, hitting the highest level since October 2023. The yields on the 10-year and 2-year government bonds reached 4.63% and 4.10%, respectively, the highest since February 2025. In Japan, 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 5% yield level on the 30-year U.S. Treasury as a “dividing line,” believing that this level will attract bottom-fishing buyers. Guneet Dhingra, head of U.S. interest rate strategy at BNP Paribas, said, “Above 5% has no anchoring point.” He advised clients to focus on the trading range of 5.25% to 5.5% for the 30-year U.S. Treasury. (Jin10)