Global bond markets drama spells out home truths for investors

Investors are rushing to the exits in long-term bond markets as a ramp-up in inflation expectations triggers a broader rethink about the reliability of the asset within portfolios.

Over the weekend, the 30-year yield on US government bonds broke through 5 per cent to reach its highest closing level since July 2007, while yields on 30-year gilts – British government bonds – rose to a 28-year-high of 5.87 per cent. The yield on the 30-year Japanese bond jumped to 4 per cent for the first time in history.

Source: https://www.afr.com/markets/debt-markets/global-bond-markets-drama-spells-out-home-truths-for-investors-20260518-p5zxzq