Global markets have spent the past month navigating a challenging combination of rising bond yields, inflation concerns and geopolitical uncertainty. Persistent worries that inflation could reaccelerate led investors to sell US Treasuries, pushing the 30-year Treasury yield to its highest level in nearly 19 years and the 10-year yield to its highest since January 2025.
Expectations for US Federal Reserve policy have shifted, with markets now assigning a 42% probability of an interest rate hike in December compared with almost none a month earlier. Higher yields have weighed on equity valuations and tightened financial conditions globally.
