A global bond selloff pushed the US 10-year Treasury yield to its highest level
since early 2025 amid thin August trading, with investors wary of inflation and
heavy corporate issuance. Sovereign bonds from Europe to Japan moved similarly
as uncertainty over the inflation outlook and changes to bond-buying structures
weighed on demand. Germany sold 30-year debt via banks earlier, sending yields
to 15-year highs. BMO Capital Markets US rates strategist Ian Ling said the
selloff "has become a macro event." He said he does not expect a Fed hike next
month but markets may not price a zero probability ahead of the decision; the
cancellation of forward guidance has further complicated the policy outlook.
