Rising concerns over the U.S. economy and ongoing tariff disputes have put global government bonds under selling pressure, experts say. Donald Trump’s push for interest-rate cuts, combined with a major spending bill, has shaken investor confidence, sending bond prices down while yields rise.
Last week, a federal appeals court in Washington DC ruled that President Trump had exceeded his authority with sweeping reciprocal tariffs. Should the Supreme Court deem the tariffs illegal, it remains unclear how the U.S. will compensate for the lost revenue.
The Federal Reserve (Fed) is expected to cut interest rates on 17 September. Meanwhile, U.S. 10-year bonds rose to 4.3%, Japan’s 10-year yield hit 1.63%, France’s 10-year bond reached 3.58%, and the UK’s 10-year yield climbed to 4.69%, reflecting persistent uncertainty in these markets.
In this climate, central banks and institutional investors have turned to gold, which reached a record $3,578.54 per ounce on Wednesday, highlighting its role as a safe-haven asset.
Ekin Cinar, chief economist at Turkish financial services firm Tacirler, said that national debt levels and budget deficits are impacting long-term bond yields, particularly in the UK. She added that growing pressure on the Fed to cut rates could steepen the yield curve in the coming months.
Burak Pirlanta, research specialist at Gedik Investment, noted that U.S. bonds are under pressure due to fiscal concerns, including record budget deficits and new spending plans. He highlighted that Trump’s proposed tariffs on China could further disrupt global trade, raising inflation and reducing demand for bonds.
Pirlanta also pointed to developments in Japan and the UK as deepening the crisis. Japan’s inflation now surpasses that of the U.S., while in the UK, overspending has pushed bond yields to their highest level since 1998.
Even if the Fed cuts rates, experts warn that long-term yields may not fall, as rate cuts could weaken the U.S. dollar or increase borrowing costs. As a result, investors are increasingly turning to tangible assets like gold and silver, with gold prices up more than 35% this year and global reserves at a 30-year high.
The surge in bond yields reflects financial pressures, inflation concerns, and central bank policies, with crises in Japan and the UK serving as a warning for global markets to prioritise safer assets.
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The Philippines remains under a "severe threat" from China despite recent efforts by Washington and Beijing to ease tensions, Philippine Defence Secretary Gilberto Teodoro said on Saturday (30 May).
Russia has recalled its ambassador to Armenia for consultations, citing Yerevan's growing rapprochement with the European Union. The move is seen as the latest sign of deteriorating relations between the longtime allies ahead of Armenia's parliamentary election on 7 June.
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 30 May, covering the latest developments you need to know.
A group of Azerbaijani civil society organisations has called for increased scrutiny of Swiss building materials giant Holcim, citing court rulings and ongoing investigations linked to its subsidiary Lafarge's activities during the Syrian conflict.
The World Health Organization (WHO) says ongoing conflict, funding pressures and international travel restrictions are complicating efforts to contain a fast-growing Ebola outbreak in the Democratic Republic of Congo (DRC).
Thai rescuers say five people have been pulled alive from a flooded cave in remote Laos, where seven villagers became trapped after heavy rain cut off access underground.
Russia and Kazakhstan signed 15 agreements during President Vladimir Putin’s state visit to Astana on Thursday (28 May), including deals on Kazakhstan’s first nuclear power plant and expanded oil cooperation with Russia.
European companies are continuing to deepen their presence in China, with nearly seven in ten firms maintaining or expanding their supply chains despite global efforts to diversify, according to a new survey by the EU Chamber of Commerce.
BP has removed its chair, Albert Manifold, with immediate effect, citing concerns over governance and conduct. The company said its board had unanimously decided that Manifold should no longer serve as chair or director.
The dual-class share structure outlined in SpaceX’s initial public offering (IPO) filing, which gives chief executive Elon Musk outsized control, has reignited one of Wall Street’s longest-running debates over corporate governance.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
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