Global bond sell-off intensifies as US

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Published: 2026-09-02T09:06:42.371Z • Permanent link

Global bond sell-off intensifies as US yields surge to 4.4%, while UK borrowing costs rise to 3.9% in a move that is adding to the challenges facing John Healey, the UK's Chief Secretary to the Treasury, as he prepares for his first budget. The sell-off is driven by a combination of factors, including rising inflation, a strengthening US dollar, and concerns about the global economic outlook.

On Monday, the US Treasury Department announced a $17.2 billion increase in its quarterly debt sale, which was seen as a sign of the government's willingness to sell more bonds to finance its growing budget deficit. The move was also seen as a sign of the market's growing skepticism about the Fed's ability to keep inflation in check. The US 10-year Treasury yield, which has been rising steadily over the past few months, surged to 4.4% on Tuesday, its highest level since 2011.

The UK's borrowing costs, meanwhile, have risen to 3.9%, their highest level since 2009. The move is a sign of the market's growing concern about the UK's economic outlook, which has been weakened by Brexit uncertainty and a slowdown in the economy. The sell-off has also added to the challenges facing John Healey, who is preparing for his first budget and will have to make tough decisions about how to balance the books.

The global bond sell-off has significant implications for companies that rely on debt financing, as well as for research communities and markets that are closely tied to the bond market. Companies that rely on debt financing, such as consumer staples and utilities companies, are likely to feel the pinch as borrowing costs rise. Research communities, meanwhile, will have to adjust their models to reflect the changing interest rate environment. The sell-off also has implications for markets, as investors become increasingly risk-averse and seek safer assets.

For example, the sell-off has already led to a decline in the value of emerging market bonds, which have been particularly vulnerable to the rising interest rate environment. The decline in emerging market bonds has also led to a decline in the value of dollar-denominated bonds, which are popular among investors seeking to diversify their portfolios. The sell-off has also led to a rise in the value of gold, which is seen as a safe-haven asset in times of economic uncertainty.

The global bond sell-off is part of a larger pattern of economic uncertainty that has been building over the past few months. The sell-off is also a response to concerns about the global economic outlook, which has been weakened by a slowdown in the US economy and a decline in global trade. The sell-off is also a response to concerns about the impact of Brexit on the UK economy, which has been weakened by a decline in investment and a rise in uncertainty.