The 2026 bond market was sold off: 30-year US bond yields hit a four-month high, and optimistic economic expectations seriously dampened safe-haven demand

The Zhitong Finance App notes that US Treasury bonds fell on the first trading day of 2026. Among them, the yield on 30-year treasury bonds rose to the highest level since the beginning of September last year because market optimism about US growth prospects weakened demand for safe-haven assets.

The 30-year US Treasury yield once climbed 4 basis points to 4.88%; the 10-year US Treasury yield climbed 2 basis points to 4.19%. Prior to that, data showed that the number of jobless claims in the US fell to one of the lowest levels since the beginning of last week.

Eugene Leow, a fixed income strategist at DBS Bank, said, “The rise in long-term yield fluctuations may reflect increased optimism about the US economy, which may also be echoed in the stock market.”

Australian bonds also fell. The yield on both 3-year and 10-year treasury bonds rose by about 9 basis points as the market speculated that rising commodity prices would enhance the country's growth prospects. The Australian dollar once rose 0.5% against the US dollar, outperforming other currencies in the Group of Ten (G10).

Lombard Odier strategist Homin Lee said, “Today's fluctuations in the Australian dollar and interest rates partly reflect bond investors' cautious positions before the release of the US non-farm payrolls data for December, which is likely to record growth. The growing popularity of the global metals trading market is also contributing to this momentum.”

German and French long-term treasury bonds also recorded declines at the opening of the market.