Global bond yields climbed to a high level in nearly 20 years due to rising oil prices driving up inflation concerns, and the market sharply raised expectations of the Federal Reserve's interest rate hike. Following the sell-off in US bonds, Japanese and Australian bonds weakened on Tuesday, and 10-year US bond yields rose to the highest level since January last year. The Bloomberg Global Government Bond Index yield rose for the fourth consecutive trading day on Monday to 3.72%, a record high since mid-2008. The latest trigger for rising yields was Federal Reserve Chairman Kevin Walsh's speech at the Jackson Hole meeting on Friday. He once again expressed his determination to end inflation which has been higher than the central bank's target for five consecutive years. Meanwhile, the conflict between the US and Iran broke out again, and the market feared that energy transportation in the Strait of Hormuz would be blocked for a long time, and oil prices would rise accordingly. High government spending in markets such as Japan, the United Kingdom, and the United States raised concerns, and prompted investors to demand higher risk compensation by holding long-term bonds. The 10-year Japanese Treasury yield reached 3% on Tuesday for the first time since 1996; during the same period, Australian Treasury yields soared to levels since 2011.

Global bond yields climbed to a high level in nearly 20 years due to rising oil prices driving up inflation concerns, and the market sharply raised expectations of the Federal Reserve's interest rate hike. Following the sell-off in US bonds, Japanese and Australian bonds weakened on Tuesday, and 10-year US bond yields rose to the highest level since January last year. The Bloomberg Global Government Bond Index yield rose for the fourth consecutive trading day on Monday to 3.72%, a record high since mid-2008. The latest trigger for rising yields was Federal Reserve Chairman Kevin Walsh's speech at the Jackson Hole meeting on Friday. He once again expressed his determination to end inflation which has been higher than the central bank's target for five consecutive years. Meanwhile, the conflict between the US and Iran broke out again, and the market feared that energy transportation in the Strait of Hormuz would be blocked for a long time, and oil prices would rise accordingly. High government spending in markets such as Japan, the United Kingdom, and the United States raised concerns, and prompted investors to demand higher risk compensation by holding long-term bonds. The 10-year Japanese Treasury yield reached 3% on Tuesday for the first time since 1996; during the same period, Australian Treasury yields soared to levels since 2011.