Global government bond markets remain under significant pressure, with yields rising across the United States, Europe, the United Kingdom, and Japan. China continues to move in the opposite direction, highlighting the widening divergence between global monetary policy cycles.
US Treasuries are selling off sharply across the curve. The 2-year yield stands at 4.91%, the 5-year at 5.06%, the 10-year at 5.22%, and the 30-year at 5.53%.
The front end has experienced the greatest year-to-date repricing, with the 2-year yield up almost 144 basis points since the beginning of the year. The curve remains positively sloped, with approximately 31 basis points between the 2-year and 10-year yields, although it has flattened significantly during 2026. The 30-year yield above 5.5% also points to continued expansion in the term premium.
European sovereign bonds are following the global selloff. Germany's 10-year Bund yield has risen to 3.64%, while the French 10-year OAT stands at 4.74% and the Italian 10-year BTP at 4.57%.
France's yield premium over Germany is now wider than Italy's, an unusual configuration reflecting persistent concerns surrounding French fiscal conditions. Italian bonds are experiencing the largest daily move among the major Eurozone markets covered, with the 10-year yield rising 6.4 basis points.
UK Gilts are also under considerable pressure. The 2-year yield stands at 4.90%, the 10-year at 5.41%, and the 30-year at 5.90%—the highest long-term yield among the developed markets covered.
The UK curve remains steeply upward sloping, with almost 100 basis points separating the 2-year and 30-year yields. The 10-year Gilt also trades above the equivalent US Treasury, reflecting an additional UK-specific risk premium.
China remains the major exception. The 2-year Chinese Government Bond yields just 1.25%, while the 10-year stands at 1.67%. China is the only region covered where government bond yields have declined year-to-date.
PBOC easing, weak domestic demand, and deflationary pressures continue to anchor Chinese yields. The gap between the Chinese 10-year yield and the US 2-year Treasury now exceeds 320 basis points, illustrating the extent to which China's monetary cycle has decoupled from the rest of the world.
Japan's bond market is undergoing an equally significant shift in the opposite direction. The 2-year JGB yields 1.98%, the 10-year has moved above the psychologically important 3% level to 3.10%, and the 30-year stands at 4.18%.
The 10-year yield has risen more than 100 basis points year-to-date as the Bank of Japan continues to normalize monetary policy and exit yield curve control. The steepness of the curve, with approximately 220 basis points between the 2-year and 30-year yields, highlights the structural regime change underway after decades of near-zero Japanese interest rates.
