Long Term Bond Yields in the US, UK, France, Germany and Japan Hit Multi Decade Highs

According to Donya-e-Eqtesad, citing The Economist and published Sunday, Shahrivar 1, 1405 (August 23, 2026), the yield on 10-year US Treasury notes hit its highest level since January 2025 on August 18, and the 30-year yield briefly topped 5.3 percent, a level unseen since 2007. The US Treasury said on August 19 it will increase its purchases of long-term debt starting next month, a move Deutsche Bank analysts said reflects the government's growing concern over bond yields. Long-term yields in the UK, France and Germany have also hit their highest levels in more than a decade, and Japan's 30-year yield has moved close to its historic high. The Treasury also said US federal debt has topped 40 trillion dollars for the first time, equal to about 130 percent of last year's GDP, with the budget deficit estimated at around 6 percent of GDP.

Per the report, the Strait of Hormuz remains largely closed and has kept US diesel prices elevated; fund managers surveyed by Bank of America expect Brent crude to average around 76 dollars a barrel by year end, but bond markets show far less confidence in that stability. Large technology companies have sold about 75 billion dollars in bonds to fund AI data center buildouts, which Goldman Sachs estimates has nearly doubled these companies' total debt load versus a year earlier.