4 articles
Federal Reserve Governor Christopher Waller has put rate hikes back on the table, pushing 30-year US Treasury yields to near two-decade highs of 5.11%. The resulting global bond selloff is cascading into European debt markets and threatening emerging market stability. An 8-4 FOMC hold vote in April signals a fractured Fed, with traders now pricing a hike as early as March 2026.
A synchronized surge in long-dated sovereign bond yields across the US, UK, and Japan in mid-May 2026 triggered a global equity selloff that hit European markets hard. The simultaneous end of Powell's Fed chairmanship left a policy vacuum at the world's most influential central bank. With services inflation stuck above 3% and energy costs climbing, European investors face a fragile, policy-dependent environment with no clear resolution ahead.
UK gilt yields have reached levels unseen since the 1990s, tracking US 30-year Treasury yields above 5% as a synchronised bond market revolt grips G7 economies. Global CPI remains stuck at 3.8%, fuelled by Iran war energy shocks and persistent services inflation above 3%. G7 coordination efforts have so far failed to arrest the sell-off, with Jerome Powell's departure leaving monetary policy leadership in question.
UK government bonds are under pressure ahead of Chancellor Rachel Reeves' Spring Statement, creating spillover risks for European debt markets. The selloff coincides with oil price spikes from Iranian geopolitical tensions and Federal Reserve leadership uncertainty in the US, compounding inflation concerns across the eurozone.
