Bond markets decline globally as oil prices remain elevated

Government bond markets around the world fell sharply in September 2026, as oil prices stayed above $100 a barrel. In the United States, Treasury yields rose above 4.9% for the first time in three years. German ten-year bond yields crossed 3.5%, a level not seen since 2011. In Japan, yields reached their highest point since 1996. Oil prices climbed as high as $110 a barrel, partly because of tensions affecting key shipping routes. Investors are now worried that high energy costs will keep inflation up. About 70% of analysts expect the US Federal Reserve to raise rates in October. Higher borrowing costs make mortgages and loans more expensive for ordinary people, and they increase pressure on government budgets.