
Global bond yields surged to multi-year highs on Tuesday, with U.S. 10-year Treasury yields reaching nearly 5.3%—the highest since 2007—and 30-year yields exceeding 5.6%, a level last seen in June 2002, according to RTVSLO and Handelsblatt. The rise extended to European markets, with Slovenia’s 10-year bond yield topping 4% for the first time since 2014, while the six-month Euribor rate climbed back above 3%.
The spike in yields reflects mounting pressure on public finances and borrowing costs worldwide. In Poland, 10-year bond yields approached 6.5%, a level last observed in early 2026, as noted by PKO BP investment advisor Emil Łobodziński in Bankier.pl. Łobodziński linked the trend directly to oil prices and central bank policies, stating that bond yields and oil prices have moved in near lockstep in recent months, with geopolitical tensions in the Middle East driving both higher.
Finland’s public debt-to-GDP ratio also crossed 90% in the second quarter, hitting 90.3%, according to Statistics Finland, with state debt growing by €4 billion in the period to €220.2 billion. The surge in long-term bond yields has pushed up costs for corporate and consumer loans, including mortgages, as global markets align with the U.S. trend, Handelsblatt reported.
Central banks are responding to the tightening conditions. The U.S. Federal Reserve, which raised rates this month, is preparing for another increase in October, RTVSLO noted, while the European Central Bank’s measures are expected to slow the decline in borrowing costs in Montenegro, per Vijesti.
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