Global Bonds Set for Worst Month in Years

Global bonds were on track for their worst month in years as rising inflation, worsening government finances and heavy debt issuance pushed yields sharply higher, with elevated energy costs linked to the U.S.-Israeli war on Iran adding pressure. The 10-year U.S. Treasury yield approached levels last seen in 2007, while yields in Japan, Germany and France also reached multiyear highs. New York Fed President John Williams pushed back against expectations of earlier policy tightening, but investors warned that borrowing costs may remain structurally higher, raising refinancing costs for companies and weighing on growth. Stocks have so far held up better, supported by earnings, economic strength and enthusiasm for AI, though one analysis cautioned that October could bring further bond-market losses.