Global bond yields surge, UK gilt yields top 6% for first time since 1998

Key facts

• Global bond yields reached their highest level since mid-2008.
• UK 30-year gilt yields hit 6% for the first time since 1998.
• 10-year Japanese government note yields touched 3% for the first time since 1996.
• Rising oil prices and expectations of interest rate hikes are fueling the sell-off.

Global bond yields have surged to their highest levels since mid-2008, driven by concerns over rising oil prices and increased expectations for interest rate hikes. The sell-off began on Friday after U.S. Federal Reserve Chairman Kevin Warsh reiterated his commitment to controlling inflation.

In the UK, the 30-year gilt yield climbed above 6%, marking the first time this level has been reached since 1998. Meanwhile, the yield on 10-year Japanese government notes touched 3% for the first time since 1996. The 10-year Treasury rate also reached levels not seen since January of the previous year. A Bloomberg gauge of global sovereign bonds rose for a fourth consecutive session on Monday, reaching 3.72%, its highest point since mid-2008.