European and US Bond Yields Surge Amid Rising Oil Prices and Inflation Fears

London: Long-term bond yields in Europe's biggest economies rose to their highest levels in years, while the yield on 30-year U.S. Treasuries climbed to its highest level in nearly two decades.

According to Jordan News Agency, the sell-off came as oil prices rose amid fading hopes for a swift resolution to the conflict between the United States and Iran and renewed concerns over persistent inflation. International benchmark Brent crude was trading near $91 a barrel on Tuesday morning.

The yield on 30-year U.S. Treasuries reached 5.33%, a level not seen since 2007. In Britain, 30-year government bonds traded at 5.85%, their highest level since May 2026.

As government bonds came under renewed selling pressure globally, the yield on 10-year French government bonds rose to 4.1%, its highest level since July 2009.

The yield on 10-year German government bonds, the benchmark for the euro zone, climbed above 3.25%, reaching its highest level since March 2011.

Richard Carter, head of fixed income research at Quilter Cheviot, said the stalled U.S.-Iran peace talks had increased the likelihood that energy prices would remain elevated through the end of the year, potentially keeping inflation above expectations and increasing the chances that central banks would raise interest rates.

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